bravida holding ab · the bravida holding group was formed on 1 august 2012 when the company...

Bravida holding aBannual report 2013

report of the Board of directorsthe Board of Directors and Chief executive officer of Bravida Holding aB, reg. no. 556891‑5390, hereby present their annual report and consolidated financial statements for the financial year 2013.

The Bravida Holding Group was formed on 1 August 2012 when the company purchased the Bravida AB Group and its parent company, Scandinavian Installation Refi AB. The underlying business is the same today but the funding structure for the Group has changed. Comparative figures for the previous year refers to the period from August to December 2012.

The business Bravida is Scandinavia’s leading provider of installation and service solutions, with over 8,000 employees at 150 locations in Sweden, norway and Denmark. Bravida provides specialist services and integrated solutions in three main fields of technology: electrical, heating & plumbing and HVaC.

In its electrical installation business, the Group offers integrated solutions for lighting, heating and energy supply. alarm, surveillance and security systems are rapidly changing segments and constitute an important additional area of business on top of traditional heavy‑current installations. the com‑pany’s heating & plumbing segment provides integrated solutions for water, waste water, energy, heating and cooling. the segment also has specialist ex‑pertise in sprinkler systems, an area in which Bravida has special certification.

the HVaC segment (heating, ventilating and air conditioning) offers cus‑tomised ventilation solutions and all the technology required for air handling, air conditioning and climate control. In response to the growing demand for energy‑efficient buildings, Bravida is prioritising installation solutions which ensure improved functionality and make more efficient use of energy, resulting in lower running costs and reduced environmental impact. Bravida also has qualified staff in certain specialist areas. Bravida Fire & Security specialises in fire and security technology. Bravida technical Service Management (tSM) offers technical property services comprising supervision, maintenance and on‑call services. erfator projektledning offers project management services in the construction and real estate sectors.

operations are organised in five divisions: Divisions north, Stockholm and South in Sweden, Division norway and Division Denmark. operational management and administration are performed at local level.

the Group’s head office is located in Stockholm and provides support functions including purchasing, business development, It, communications, Hr, legal affairs, and accounting and finance.

Activities in 2013the Group reports a good, stable result. Demand is good in all countries, re‑sulting in a good order backlog at year‑end of SeK 6,075 million. Work began during the year to implement a Group‑wide streamlining programme designed to introduce more efficient, common working methods and tools in order to improve profitability.

Net sales Consolidated net sales were SeK 11,080 (4,496) million, where the figure for last year refers to the period from august to December. the installation business accounted for 52 per cent of net sales and the service business for the remaining 48 per cent. net sales were SeK 7,347 million in Sweden, SeK 1,353 million in Denmark and SeK 2,375 million in norway.

Operating profit/loss eBIta was SeK 601 million, resulting in an eBIta margin of 5.4 per cent. the eBIta margin was 6.3 per cent in the Swedish business. In Denmark the margin was 5.3 per cent and in norway it was 2.9 per cent. the operating profit was SeK 600 million, which represents an operating margin of 5.4 per cent.

Earnings before taxthe net financial expense was SeK ‑379 million and the profit before tax was SeK 221 million.

Earnings after taxthe tax expense for the year was SeK ‑47 million. of the total tax expense, SeK ‑36 million referred to deferred tax expenses while the remaining portion was payable. earnings after tax for the period were SeK 174 million.

Comprehensive income for the periodtranslation differences for the period from the translation of foreign opera‑tions were SeK ‑18 million due to the strengthening of the Swedish krona. Comprehensive income for the period was SeK 323 million. of the compre‑hensive income for the period, SeK 3 million is attributable to non‑controlling interests.

Order intake and order backlog the order intake has been good, especially in the Divisions Denmark, norway and north. order intake exceeded net sales for the year, there is con‑siderable regional variation, however, with some areas experiencing a weak market, resulting in continued pressure on prices, while other locations saw good demand. Generally, demand is weakest in the industry‑dominated parts of Sweden, as well as in eastern and southern Denmark and south‑west norway. public‑sector investments increased and are set to do so further in the health and infrastructure sectors, including road and rail, as well as in the construction of swimming baths and university buildings. Housing

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2 | BraVIDa annual report 2013

aMountS In SeK MIllIonS unleSS otHerWISe StateD

production has softened, especially in Denmark and Sweden, although there was a slight increase during the latter part of 2013. Investments in com‑mercial property and in the industrial sector are expected to improve going forward. Bravida’s order intake was SeK 12,343 million. the order backlog was SeK 6,075 million. the order backlog figures do not include Bravida’s service business.

Acquisitions and disposalsrörspecialisten was acquired by Division Stockholm on 31 December 2012 and the assets and liabilities of Bereco aS were acquired on 1 January 2013 by Division norway. all acquisitions are in line with Bravida’s strategy to expand in its priority markets.

acquisitions and disposals increased net sales for the year by SeK 90 million. For more information about the acquisitions, see note 4.

Regional marketsOperations in Sweden In Sweden Bravida operates through three divisions: north, Stockholm and South. the divisions corresponds, in essence, to the geographical areas in Sweden that each division operates in. Division north operates in norrland, Dalarna, Västmanland, Södermanland, Östergötland, Gotland and närke. Division Stockholm operates in Stockholm and uppland. Division South operates in southern Sweden and Värmland.

net sales were SeK 7,347 million. of total net sales, SeK 7,296 million re‑fers to external sales, with sales to other segments accounting for the remain‑ing portion. Demand varies significantly from one locality to another, and we have seen a general stabilisation in industrial locations, while the metro politan regions of Gothenburg and Malmo have remained relatively weak. Generally, demand is strongest in the Stockholm region and in northern Sweden and weaker in industrial areas. the operating profit was SeK 462 million, which represents an operating margin of 6.3 per cent. order intake for the year was SeK 7,556 million. at year‑end the order back log was SeK 3,564 million. the average number of employees was 4,823.

Operations in NorwayDivision norway had net sales of SeK 2,375 million, which were wholly attributable to external sales. eBIta was SeK 68 million, resulting in an eBIta margin of 2.9 per cent. the operating profit was SeK 68 million. operating profit was negatively impacted by pressure on prices and increased production costs, as well as project impairment losses.

the order intake was SeK 2,640 million and the order backlog at the end of the period was SeK 1,204 million. the order backlog includes among other projects the expansion of the airport Gardermoen, nordea’s new office in oslo and the new hospital in Østfold. the average number of employees was 1,894.

Operations in DenmarkDivision Denmark’s operations were stable during the year. net sales were SeK 1,353 million and were wholly attributable to external sales. the order intake was SeK 2,146 million. eBIta was 71, resulting in an eBIta margin of 5.2 per cent. the operating profit was SeK 70 million. the Danish economy has been very weak over the past few years, which has a direct impact on the construction market and also on the building services market. organisational adaptations were implemented during the year to address the weak demand in certain sub‑markets.

the order backlog was SeK 1,307 million and includes several large infrastructure and hospital projects.

the average number of employees during the year was 1,167.

Cash flow and investments Cash flow from operating activities was SeK 457 million. Cash flow includes SeK ‑32 million in taxes paid. Cash flow from investing activities was SeK ‑54 million, partly due to the acquisition and sale of operations. Cash flow before financing activities was SeK 403 million. Cash flow from financing activities was SeK 344 million and the cash flow for the year was therefore SeK 747 million.

Financial position Consolidated cash and cash equivalents at 31 December were SeK 838 million (97). Bravida also had access to SeK 450 million (348) in undrawn credit facilities. at 31 December the company had interest‑bearing liabilities of SeK 3,312 million (3,205). equity at year‑end was SeK 3,701 million (3,401) representing an equity/assets ratio of 34.6 per cent (33.8).

Employees the average number of employees was 7,967. Bravida is fully prepared to adapt its resources to changing conditions on its local markets. a shortage of resources is evident in some areas, an issue that is partly being addressed through the use of subcontractors.

Skills development Bravida’s success is based on the expertise, knowledge and reliability of its employees and their ability to deliver the solutions demanded by the custom‑ers. Continuous training is the key to improving the efficiency and quality of all processes and deliveries.

Bravida’s managers go through Bravida’s leadership training programme, which runs over 18 months and concludes with the award of an internal diploma. the Bravida School offers a wide range of training programmes for the Group’s employees. In 2013 we worked on improving our existing range of courses and added new course options, especially in business skills, service and Health and Safety.

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BraVIDa annual report 2013 | 3

Recruitment the building services industry is set to grow, and technological advances will require more skilled employees. the age structure of Bravida’s staff also points to a general need to attract younger people with a high level of education. For a few years now the Group has therefore stepped up its recruitment efforts, with a particular emphasis on recruiting engineers. For each vacant position Bravida seeks to identify the individual who has the best skills profile and development potential among the applicants. to be able to offer good career prospects in the company, Bravida promotes internal recruitment and personal development. a number of graduate engineers have been recruited over the years, resulting in a common development programme for engineers at Bravida.

Health and Safetya safe workplace where everything is in good order leads to strong results, not just in the form of healthier employees but also for our owners, customers and other stakeholders.

Bravida has a zero vision for workplace accidents, and the work to achieve this takes the form of systematic health and safety activities that are integrated in our regular operations. During 2013, these health and safety activities focused on encouraging the reporting of incidents, among other things. Work continues in Denmark to have more departments certified under oHSaS 18001, while health and safety issues also form part of a major improvement programme for the whole of Bravida. Information, follow‑up and feedback cre‑ate a more predictable work environment where accidents and health problems can be prevented.

Equal opportunities Bravida works actively on issues such as harassment and equal opportunities. the Group has an equal opportunities plan which promotes equal opportuni‑ties and rights for all employees and prospective employees. Bravida also works actively to prevent all forms of discrimination.

as in the rest of the building services industry, the proportion of female employees at Bravida is currently small. as part of a long‑term plan to change this, the Group is working with other employer groups and apprenticeship councils to increase the proportion of skilled women in the industry.

Employee targets and follow-up Bravida’s goal is to be the first‑choice employer for employees. the general goal is to achieve an eSI score (employee satisfaction index) of at least 4.0 among the Group’s employees, with the survey usually held every two years. the most recent employee survey was in 2012 and resulted in an eSI score of 3.7. the participation rate has increased significantly and we have added a new sub‑area to the survey, a safe work environment, in line with Bravida’s zero vision for workplace accidents.

Quality and environmentthe company’s quality and environmental management systems support our processes at various stages of production. as part of its commitment to constant improvement, Bravida works actively to achieve general and detailed quality and environmental goals, operational plans and reviews in order to measure improvements. Bravida’s quality and environmental activities are ultimately governed by the policies adopted by the company’s management.

Bravida has introduced procedures for identifying, examining and evaluating the environmental impact of our operations. the most significant environmental impact is in areas such as travel, transport, energy consumption in building services and waste.

Bravida’s operations are currently not of such scale or nature as to be sub‑ject to the permit requirements for environmentally hazardous activities under Chapter 9, Section 6 of the Swedish environmental Code. the operations are conducted in such a way that there is no risk of significant contamination or of other significant damage to human health or the environment. a notification requirement for environmentally hazardous activities exists for the interim storage of hazardous waste in certain locations at our Bravida Sverige aB subsidiary. the operation concerned accounted for less than one per cent of consolidated net sales in 2013.

Quality targets and follow-up in 2013the overall goal is to achieve an average CSI score (customer satisfaction index) of at least 4.0 at local office level.

In order to continually assess and measure the quality of our services and products, Bravida conducts customer satisfaction surveys on a regular basis. Bravida’s definition of a satisfied customer is a customer who generates a CSI score over 4.0 on a scale of 1 to 5. In the latest survey, Bravida received a CSI score of 3.9 for installation contracts and 4.0 for service assignments.

Environmental targets and follow-up in 2013 the overall goal is to work actively to reduce energy use and other environ‑mental impacts from the company’s projects. Bravida continually evaluates the environmental impact of its transports with a view to reducing that impact.the company is seeking to reduce the use of fossil fuels in the company’s roughly 3,000 vehicles, and recent figures point to a continued downward trend, with a lower total consumption per kilometre travelled.

Significant risks and uncertainties for the Group and parent company In its operations Bravida is exposed to various types of risk, both operational and financial. operational risks are associated with day‑to‑day operations relating to economic activity, tendering, capacity utilisation, price risks and revenue recognition. Financial risks arise from the amount of capital tied up, the company’s capital requirements, and currencies.

Bravida is exposed to greater operational risks than financial risks.

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Risk management In Bravida’s installation business the risk is asymmetric. In any given project the chances of exceeding the expected outcome during the term of the project are limited while there is a risk of incurring significant losses in relation to the size of the project. Good management of operational risks in each individual project is therefore key. the management of operational risks is a continuous process covering a large number of ongoing projects and service assign‑ments. It is therefore particularly important that Bravida’s employees consist‑ently comply with standardised methods and work methods to ensure that operational risks remain under control. risk management is clearly defined in Bravida’s management system, which is designed to prevent risks and reduce the company’s risk exposure. the company’s systematic work on quality and environmental issues as well as occupational health and safety issues are key building blocks which make up the backbone of the management system. the Group’s financial risks are managed centrally for the purpose of minimising and controlling the risk exposure while credit risks in the business operations are managed locally.

Operational risk Economic activityFluctuations in the economy affect the building services sector, which is sensitive to market fluctuations and political decisions that can have an impact on demand for residential and commercial new builds and investments in industry and the public sector. Demand for service and maintenance work is not as sensitive to fluctuations in the economic cycle. the service business accounts for nearly half of Bravida’s net sales.

Tenderinga building services company is exposed to commercial and production‑related risks, which need to be identified and managed during the tendering process. to ensure that this is done, Bravida has drawn up process descriptions and checklists that are aimed at identifying and pricing the risks in the company’s cost estimates and tenders.

Capacity utilisationCapacity utilisation is heavily dependent on demand in Bravida’s local markets. an unforeseen decline in capacity utilisation generally results in a loss of revenue which in the short term cannot be offset by a corresponding cost reduction. Bravida seeks to mitigate these risks through continuous resource planning and by employing subcontractors during periods of peak production.

Price risksunforeseen variations in input prices and prices charged by subcontractors constitute a risk. Bravida seeks to offset the risk of rising prices through the use of contract forms that are appropriate for the project, indexation for fixed‑price agreements and efficient purchasing procedures.

Revenue recognitionBravida recognises revenue from its projects in accordance with the percent‑age of completion method. the recognition of revenue is based on the degree of completion of the project and the latest forecast. Bravida continually moni‑tors the economic status of its projects to limit the risk of incorrect forecasts and consequently of incorrect revenue recognition. Bravida’s quality assurance system specifies the processes to be used from the beginning to the end of the project, in order to ensure efficient production. In large projects the company also performs project assurance activities to ensure a high quality in the implementation of its projects.

InsurancesBravida has adequate insurance cover for its operations, including liability, contract and property insurance.

Financial risksBravida is exposed to financial risks, which arise partly as a result of changes in debt levels and interest rates. For information about financial risks, includ‑ing interest, currency, financing and credit risks, see note 28. the Group’s interest risk and currency exposure has increased following borrowing in the form of a corporate bond in June 2013. these risks have been managed through currency and interest rate hedges.

Material disputes In 2012 a significant dispute arose for the Bravida aB Group concerning a management agreement concluded by Bravida tSM. the dispute refers to the interpretation of certain conditions in the agreement, which has been termi‑nated. Bravida has filed for arbitration and is claiming compensation of over SeK 40 million. a ruling is expected in June 2014 at the earliest.

In norway, there is a claim against a purchaser of services on an oil rig. the requirement is 28 MnoK. our client is in turn in dispute with their clients for payment. payment to Bravida is dependent on payment to Bravidas client. Between our clients and their clients, there is a court proceeding , a ruling in the case is not expected until 2015.

on top of this, there is a small number of minor disputes in progress in the Group. the scope and nature of the disputes are not out of proportion to the scope and nature of the company’s operations. the disputes are thus related to the company’s operational activities, and mostly relate to claims for work carried out.

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OutlookBravida is established in about 150 locations across Scandinavia, each with its own particular local market conditions. the Scandinavian building services market as a whole has improved in the last two years. the economy as a whole was relatively weak in 2013, however. In 2014, we expect to see an improve‑ment in the economic situation in Sweden and Denmark, but a slight worsen‑ing in norway. looking at the global economy as a whole, there are several sources of concern which could affect Bravida in the future, including falling prices for oil and iron ore, which impact on operations in northern norrland and norway, the ongoing financial crises in a number of european countries, and a weakened economy in norway with falling property prices. the assess‑ment is that the norwegian market will gradually start to recover towards the end of 2014, while operations in Sweden and Denmark will generally benefit from an improved market situation.

new commercial construction is expected to improve slightly. an improve‑ment on the market for residential construction is expected, primarily in the metropolitan regions, as a result of a supply and demand imbalance, while at the same time consumers are being more positive and interest rate levels are low. the existing housing stock in Sweden requires renovation and refurbish‑ment, not least those in the “million programme”. public‑sector investments, especially in hospitals and infrastructure, are expected to remain at good levels over the next few years. the need for energy efficiencies and reduced running costs is expected to lead to an increase in the share of installation investments in existing buildings. With supplementary specialist services in security, cool‑ing and sprinkler systems, Bravida offers a full range of services, providing a foundation for solid growth. With a strong order backlog, Bravida expects net sales to grow during the year.

In recent years Bravida has restructured and streamlined its activities in sales, purchasing, production and administration. Bravida is implementing a far‑reaching streamlining programme across all departments, which is designed to improve profitability through more efficient production, better pricing and more efficient procurement. a review of administrative costs was carried out in 2013, which resulted in cost reductions. the streamlining programme will continue in 2014, along with an ongoing effort to expand the service business.

thanks to the measures described above, Bravida is in a stable position for 2014.

OwnershipBravida Holding aB is a wholly owned subsidiary of Bravissima Holding aB, reg. no. 556930‑5625

The work of the Board of DirectorsDuring the course of the year, the Group Board moved from Bravida aB to Bravida Holding aB. the new Board of Directors of Bravida Holding aB was elected at an extraordinary general meeting on 18 December 2013. the majority of the Board work during the year therefore took place at Bravida aB. Bravida aB is a wholly owned subsidiary to Bravida Holding aB.

Bravida ABIn 2013 the Board met on six occasions, holding four regular and two extra‑ordinary meetings. the extraordinary meetings addressed issues relating to refinancing, as well as changes to the composition of the Board of Directors. the regular meetings were normally held at Bravida’s head office in Stockholm, according to a specified annual schedule. Members of the senior management and the central Group functions presented reports at the Board meetings. Bravida’s chief auditor was present at one of the Board meetings.

the Board’s work followed the rules of procedure for the Board, which were adopted at the Board meeting in May 2012, and new rules of procedure that were adopted in May 2013.

the Board addressed strategic issues, business plans, financial state‑ments, acquisitions and disposals, and other significant events. reporting on the development of the activities and financials of the company and Group has been a standing agenda item.

Bravida Holding ABthe work of this Board has primarily been related to the bond which the company decided to issue and which was then listed on the nasdaq oMX Stockholm and the Irish Stock exchange. the company held one regular and two extraordinary meetings in relation to this and on the appointment of the company’s new Board of Directors in December 2013. at the same time, the company adopted new rules of procedure.

Parent companyBravida Holding aB’s net sales for the year were SeK 1 million (0). all sales were internal.

the operating profit was SeK ‑4 million (0) while earnings before tax were SeK ‑237 million (‑45). Cash and cash equivalents were SeK 1 million (0). equity was SeK 3,303 million (3,487) before the proposed dividend of SeK 500 million, and the equity/assets ratio was 49.4 per cent (55.1). the average number of employees at the parent company was 1 (0). the number of shares at the beginning and end of the year was 403,133,196.

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Events during the reporting periodDuring the year, Bravida Holding issued bonds worth SeK 3,225,000,000 divided into euro bonds of eur 225,000 and Swedish kronor bonds of SeK 1,300,000,000. the loan matures on 15 June 2019, and the bonds are subject to the following interest terms: 3‑month eurIBor plus 5 per cent per annum and 3‑month StIBor plus 5 per cent per annum respectively. the corporate bonds are listed on the Irish Stock exchange and on the naSDaQ oMX Stockholm. Staffan påhlsson was appointed Ceo and Group president with effect from 7 March 2013. Staffan påhlsson has been acting Group president since 21 September 2012.

Events after the balance sheet dateno significant events to report

Proposed allocation of profitthe Board proposes that the parent company’s non‑restricted equity of SeK 3,298,564,790 be allocated as follows:

Dividend SeK 500,000,007Carried forward SeK 2,798,564,783total SeK 3,298,564,790

For more information about the company’s results and financial position, see the following income statements and balance sheets and the notes to the accounts.

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FInanCIal StateMentS

SEK millions NOTE1 Jan 2013

-31 Dec 20131 Aug 2012

-31 Dec 2012

net sales 2 11,080 4,966

Costs of production ‑8,856 ‑3,962

Gross profit/loss 2,224 1,004

administrative and selling expenses ‑1,624 ‑760

other operating expenses – ‑33

Operating profit/loss 3, 5, 6, 7, 30 600 211

proFIt/loSS FroM FInanCIal IteMS

Financial income 145 137

Financial expenses ‑523 ‑506

Net financial income/expense 8 -378 -369

Earnings before tax 221 -158

tax on profit/loss for the year 9 ‑47 20

Profit/loss for the year 174 -138

otHer CoMpreHenSIVe InCoMe

Items that have been transferred or can be transferred to profit/loss for the year

translation differences for the year from the translation of foreign operations 20 ‑18 18

Changes in the fair value of financial derivatives for the year ‑70 –

Items that cannot be transferred to profit/loss for the year

revaluation of defined benefit pensions 284 ‑23

tax attributable to items in other comprehensive income ‑47 –

Other comprehensive income for the year 149 -5

Comprehensive income for the year 323 -143

CoMpreHenSIVe InCoMe For tHe year attrIButaBle to:

equity holders of the parent 320 ‑144

non‑controlling interests 3 1

Comprehensive income for the year 323 -143

consolidated income statement and statement of comprehensive income



SEK millions NOTE 31 Dec 2013 31 Dec 2012

aSSetSIntangible assets 10 6,737 6,749property, plant and equipment 11 38 36Interests in associates 12 6 4pension assets 13 85 –other securities held as non‑current assets 14 46 48long‑term receivables 15 71 14Deferred tax asset 9 105 184Total non-current assets 7,087 7,035

Inventories 61 66tax assets 25 23trade receivables 16 1,764 1,901accrued but not invoiced income 17 761 763prepayments and accrued income 18 149 153other receivables 15 24 31Short‑term investments and restricted funds 19 – 3Cash and cash equivalents 838 97Total current assets 3,623 3,036TOTAL ASSETS 26 10,710 10,072

eQuIty 20Share capital 4 4other contributed capital 3,518 3,518reserves ‑70 18retained earnings including profit/loss for the year 245 ‑162Equity attributable to equity holders of the parent 3,697 3,377

non‑ControllInG IntereStS 4 2

lIaBIlItIeSnon‑current interest‑bearing liabilities 21 – 2,814Bond loan 21 3,312 –other non‑current liabilities 51 –pension provisions 13 62 222other provisions 22 35 38Deferred tax liabilities 9 35 26Total non-current liabilities 3,495 3,100

Current interest‑bearing liabilities 21 – 50trade payables 964 1,004tax liabilities 19 41Invoiced but not accrued income 23 1,154 1,085other liabilities 24 313 319accrued expenses and deferred income 25 946 972provisions 22 118 123Total current liabilities 3,514 3,594Total liabilities 7,009 6,693TOTAL EQUITY AND LIABILITIES 26 10,710 10,072

pledged assets and contingent liaBilities for the group31 Dec 2013 31 Dec 2012

pledged assets 21, 29 16,923 9,808Contingent liabilities 21, 29 21 20

consolidated Balance sheet



SEK millionsShare

capital

Other contributed

capitalTranslation

reserveHedging reserve

Retained earnings,

incl. profit/loss for the year

Totalequity

opening balance acc to balance sheet equity at 01 august 2012 0 – – – – 0

profit/loss for the year ‑138 ‑138

other comprehensive income for the year 18 – ‑23 ‑5

new share issue 4 3,458 3,461

non‑cash issue 0 60 60

Shareholder contributions received 1 1

Equity 31 Dec 2012 4 3,518 18 – -161 3,378

profit/loss for the year 174 174

other comprehensive income for the year ‑18 ‑70 237 149

Equity 31 Dec 2013 4 3,518 0 -70 250 3,701

of which, shareholders without controlling influence, 31 Dec 2012 4 4

Equity attributable to equity of the parent company, 31 Dec 2012 4 3,518 0 -70 254 3,697

More information on equity is provided in note 20 on page 32.

consolidated statement of changes in equity




-31 Dec 20131 Aug 2012

-31 Dec 2012

operatInG aCtIVItIeS

earnings before tax 221 ‑158

adjustments for non‑cash items 32 73 89

Income taxes paid ‑32 ‑18

Cash flow from operating activities before changes in working capital 262 -87

CaSH FloW FroM CHanGeS In WorKInG CapItal

Increase (‑) / Decrease (+) in inventories 5 10

Increase (‑) / Decrease (+) in operating assets 99 ‑560

Increase (+) / Decrease (‑) in operating liabilities 91 357

Cash flow from operating activities 457 -279

InVeStInG aCtIVItIeS

acquisition of subsidiaries 4, 31 ‑40 ‑4,222

acquisition of assets and liabilities 4 ‑1 ‑2

acquisition of property, plant and equipment 11 ‑13 ‑5

Cash flow from investing activities -54 -4,229

FInanCInG aCtIVItIeS

Share issues – 3,518

Shareholder contributions received – 4

loans raised 21 3,269 1,028

repayment of loans 21 ‑2,925 50

Cash flow from financing activities 344 4,600

Cash flow for the year 746 92

Cash and cash equivalents at beginning of year 97 –

Foreign exchange difference in cash and cash equivalents ‑6 5

Cash and cash equivalents at end of year 838 97

consolidated cash flow statement




-31 Dec 201325 Apr 2012

-31 Dec 2012

net sales 1 –

administrative and selling expenses 5, 6, 7 ‑5 –

Operating profit/loss -4 –

proFIt/loSS FroM FInanCIal IteMS

Interest and similar income 169 243

Interest and similar expenses ‑402 ‑288

Net financial income/expense 8 -233 -45

Earnings after financial items -237 -45

approprIatIonS

Group contribution 1 –

Earnings before tax -236 -45

Deferred tax liabilities 9 52 10

Profit/loss for the year1) -184 -35

1) profit/loss for the year corresponds to comprehensive income for the year.

parent company income statement



SEK millions NOTE 31 Dec 2013 31 Dec 2012

aSSetSNon-current assetsFinancial assetsInterests in Group companies 31 3,673 3,673receivables from Group companies 30 – 342Deferred tax asset 9 62 10Total non-current assets 3,734 4,024

Current assetsCurrent receivablesreceivables from Group companies 30 2,953 2,307other receivables 15 1 –prepayments and accrued income 18 1 –

2,954 2,307Cash and bank balances 1 2Total current assets 2,956 2,309TOTAL ASSETS 26 6,690 6,334

eQuIty anD lIaBIlItIeSEquity 20Restricted equityShare capital (403,133,196 shares) 4 4

4 4Non-restricted equityShare premium reserve 3,518 3,518retained earnings ‑35 0profit/loss for the year ‑184 ‑35

3,299 3,4833,303 3,487

Non-current liabilitiesnon‑current interest‑bearing liabilities – 2,804Bond loan 3,312 –

3,312 2,804Current liabilitiestrade payables 3 –liabilities to Group companies 30 63 –other liabilities 24 0 –accrued expenses and deferred income 25 9 43

75 43TOTAL EQUITY AND LIABILITIES 26 6,690 6,334

pledged assets and contingent liaBilities for the parent company31 Dec 2013 31 Dec 2012

pledged assets 29 3,673 3,673

Contingent liabilities 29 1,050 none

parent company Balance sheet



Non-restricted equity

SEK millions Share capital Share premium

reserve Retained earningsProfit/loss for the

year Total

openInG BalanCe aCC to BalanCe SHeet 0

equity, 25 april 2012 0 – – 0


new share issue 4 3,458 3,461

non‑cash issue 0 60 60

Shareholder contributions received 1 1

Equity 31 Dec 2012 4 3,518 – -35 3,487


appropriation of retained earnings ‑35 35 –

Equity 31 Dec 2013 4 3,518 -35 -184 3,303

More information on equity is provided in note 20 on page 32.profit/loss for the year corresponds to comprehensive income for the year.

parent company statement of changes in equity




-31 Dec 201325 Apr 2012

-31 Dec 2012

operatInG aCtIVItIeS

earnings before tax1) ‑237 ‑45

adjustments for non‑cash items 32 87 –

Income taxes paid – –

Cash flow from operating activities before changes in working capital -150 -45

CaSH FloW FroM CHanGeS In WorKInG CapItal

Increase (‑) / Decrease (+) in operating assets ‑1 –

Increase (+) / Decrease (‑) in operating liabilities 33 43

Cash flow from operating activities -118 -2

InVeStInG aCtIVItIeS

acquisition of subsidiaries – ‑3,673

Cash flow from investing activities – -3,673

FInanCInG aCtIVItIeS

new share issue – 3,461

Shareholder contributions received – 60

loans raised 21 3,269 2,804

repayment of loans 21 ‑2,804 –

loans granted to Group companies ‑235 ‑2,649

Cash flow from financing activities 230 3,677

Cash flow for the year 112 2

Cash and cash equivalents at beginning of year 2 –

Cash and cash equivalents at end of year 114 2

1) excluding dividends and Group contributions accounted for under financing activities if a dividend has been paid.

Cash and cash equivalents 31 Dec 2013 31 Dec 2012

tHe FolloWInG CoMponentS are InCluDeD In CaSH anD CaSH eQuIValentS:

Cash and bank balances 1 2

Cash pool balances at subsidiaries 112 –

Total cash and cash equivalents 114 2

parent company cash flow statement


notes and accounting policies

NOTE 1 accounting policies

NOTE 2 Distribution of revenues

NOTE 3 Segment reporting

NOTE 4 acquisition of operations

NOTE 5 employees, staff costs and compensation to senior executives

NOTE 6 auditors' fees and expenses

NOTE 7 operating expenses by function of expense

NOTE 8 net financial income/expense

NOTE 9 tax

NOTE 10 Intangible assets

NOTE 11 property, plant and equipment

NOTE 12 Interests in associates

NOTE 13 pension assets and provisions for pensions and similar obligations

NOTE 14 other securities held as non‑current assets

NOTE 15 long‑term receivables and other receivables

NOTE 16 trade receivables

NOTE 17 accrued but not invoiced income

NOTE 18 prepayments and accrued income

NOTE 19 Short‑term investments and restricted funds

NOTE 20 equity

NOTE 21 Interest‑bearing liabilities

NOTE 22 provisions

NOTE 23 Invoiced but not accrued income

NOTE 24 other liabilities

NOTE 25 accrued expenses and deferred income

NOTE 26 Valuation of financial liabilities at fair value

NOTE 27 Financial risks and financial policies

NOTE 28 lease payments under operating leases

NOTE 29 pledged assets and contingent liabilities

NOTE 30 related parties

NOTE 31 Interests in Group companies

NOTE 32 Statement of cash flows

NOTE 33 events after the balance sheet date

NOTE 34 Significant estimates and assessments

NOTE 35 Information about the parent company

NOTES CONTENT

NOTE 1 SIGnIFICant aCCountInG polICIeS

General accounting policiesthe consolidated financial statements have been prepared in accordance with the International Financial reporting Standards (IFrS) issued by the International account‑ing Standards Board (IaSB) as well as interpretations from the International Financial reporting Interpretations Committee (IFrIC), as adopted by the eu. recommendation rFr 1 Supplementary accounting rules for Corporate Groups of the Swedish Financial reporting Board has also been applied.

the parent company applies the Swedish annual accounts act and recommendation rFr 2 accounting for legal entities, of the Swedish Financial accounting Standards Council. In cases where the parent company applies other accounting policies than the Group this is stated at the end of this note.

Registered officethe company is a limited liability company with its registered office in Stockholm, Sweden. the address of the head office is Mikrofonvägen 28, Se‑126 81 StoCKHolM.

Bases of valuation applied in preparing the financial statementsassets and liabilities have been recognised at historical cost, with the exception of certain financial assets and liabilities, which are carried at fair value. Financial assets and liabilities carried at fair value comprise financial assets carried at fair value through the income statement or financial assets available for sale.

Assessments and estimates in the financial statementspreparing financial statements in accordance with IFrS requires that management make assessments and estimates as well as assumptions which affect the application of the accounting policies and the recognised amounts of assets, liabilities, income and expenses. actual outcomes may differ from these estimates and assessments.

estimates and assessments are reviewed on a regular basis. Changes to estimates are reported in the period when the change is made if the change only affects this period, or in the period when the change is made and future periods if the change affects both the current period and future periods.

assessments made by management in applying IFrS which have a significant impact on the financial statements and estimates that can lead to significant adjustments to the financial statements for the following year are described in greater detail in note 35.

New or amended relevant IFRS and interpretations that have not yet been appliedthe Group has chosen not to apply any new standards or interpretations in advance in preparing these financial statements and is currently not planning to apply standards or interpretations in advance in coming years.

Future changes in accounting policiesIFrS 9 Financial Instruments will replace IaS 39 Financial Instruments: recognition and Measurement with application no earlier than 1 January 2017. IFrS 9 addresses classification and measurement of financial assets and financial liabilities and hedge accounting. IFrS 9 will be supplemented by new rules on impairment of financial assets. IFrS 9 is judged in its current form does not affect the Group’s accounting to any relevant extent. IFrS 9 has not been approved by the eu for application and such approval may at the earliest to occur when the parts of IFrS 9 have been completed. therefore, IFrS 9 in present form not applied in advance.

Operating segment reportingan operating segment is a component of the Group which engages in business from which it may earn revenues and incur expenses, for which separate financial information is available and whose results are regularly reviewed by the company’s chief operating decision‑maker for the purpose of evaluating the results and allocating resources to the operating segment. See note 3 for additional information on the breakdown into and presentation of operating segments.

ConsolidationSubsidiariesthe consolidated financial statements include subsidiaries in which the parent company directly or indirectly holds more than 50 per cent of the votes.

noteS


Amounts in sEK thousAnds unlEss othErwisE stAtEd

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Subsidiaries are those companies in which the parent company directly or indirectly holds more than 50 per cent of the votes or otherwise exercises a controlling influence over the company’s operational and financial control. Subsidiaries are included in the consolidated financial statements as of the date at which the controlling influence is transferred to the Group. they are excluded from the consolidated financial statements as of the date at which the controlling influence ceases.

the purchase method is used in accounting for the Group’s acquisition of subsidiar‑ies. the cost of an acquisition is the fair value of all assets provided as compensation, issued equity instruments and liabilities incurred or assumed at the transfer date. trans‑action costs are charged to expense immediately. Identifiable acquired assets and as‑sumed liabilities and contingent liabilities in the acquisition of an operation are initially stated at fair value at the acquisition date regardless of the size of any non‑controlling interests. In an acquisition where the transferred compensation, any non‑controlling interests and the fair value of the previously owned interest (in incremental acquisitions) exceed the fair value of the acquired assets and assumed liabilities which are accounted for separately, the difference is recognised as goodwill. When the difference is negative, in a so‑called bargain purchase, the difference is recognised in profit/loss for the year.

Intercompany transactions and balance sheet items and unrealised gains on trans‑actions between Group companies are eliminated. unrealised losses are also eliminated but any losses are viewed as an indication of possible impairment. Where applicable, the accounting policies for subsidiaries have been amended to guarantee a consistent application of the Group’s policies.

Associatesassociated companies are those companies in which the Group exercises a significant, but not a controlling, influence, which normally applies for shareholdings representing between 20 and 50 per cent of the votes. Interests in associates are accounted for by applying the equity method and are initially stated at cost.

Translation of foreign currenciesFunctional currency and reporting currencyItems included in the financial statements for the various units of the Group are valued in the currency used in the economic environment in which each company primarily oper‑ates (functional currency). Swedish kronor (SeK), the functional and reporting currency of the parent company, is used in the consolidated financial statements.

Transactions and balance sheet itemstransactions in foreign currencies are translated to the functional currency at the exchange rates applying at the transaction date. Foreign exchange gains and losses arising from such transactions and upon translation of monetary assets and liabilities in foreign currencies at closing rates are recognised in the income statement. Foreign exchange differences on borrowing are recognised under financial items while other foreign exchange differences are included in operating profit/loss.

Financial statements of foreign operationsresults and financial position for all foreign operations included in the consolidated financial statements that have a different functional currency than the reporting currency are translated to the Group’s reporting currency as follows:

‑ assets and liabilities for each of the balance sheets are translated at the closing rate

‑ income and expenses for each of the income statements are translated at the average rate

‑ all resulting foreign exchange differences are recognised through other comprehen‑sive income as a separate part of equity (translation reserve)

upon consolidation, foreign exchange differences arising from the translation of net investments in foreign operations are transferred to equity through other comprehensive income. upon divestment, wholly or partially, of a foreign operation the foreign exchange differences recognised in equity through other comprehensive income are transferred to profit/loss for the year. Goodwill and fair value adjustments arising from the acquisition

of a foreign operation are treated as assets and liabilities in this operation and translated at the closing rate.

Cash flow statementthe cash flow statement is prepared in accordance with the indirect method, which means that adjustments are made for transactions that do not result in incoming or outgoing payments.

Revenuerevenue is recognised in the income statement when it is possible to reliably measure the revenue and it is probable that the economic benefits will accrue to the Group. the company’s revenue primarily consists of revenues from installation contracts. revenue is recognised in accordance with the percentage of completion method. this method is described below in the section “Installation contracts”. Interest income is recognised over the term of the loan by applying the effective interest method. Dividend income is recognised when the right to receive payment has been established.

Installation contractsBravida applies the percentage of completion method. under this method, earnings are recognised in accordance with the degree of completion of the project. Determining the earnings accrued at any given time requires information about the following components:

‑ project revenue – the value of all revenues attributable to the contract.

‑ project cost – all costs corresponding to the project revenues that are attributable to the project.

‑ Degree of completion – recognised costs in relation to estimated total project costs.

expenditure that has been incurred during the year but that relates to future work is not included in project costs paid at the time of determining the degree of completion. these are reported as materials and inventories, advances or other assets depending on their character. Changes to the scope of the project, claims and incentive pay are included in project revenue to the extent that they have been agreed with the customer and can be reliably measured. a fundamental condition for application of the percentage of completion method is that project revenues and project costs can be reliably measured and that the degree of completion is determined in a way that is relevant with respect to the reliability requirement.

For projects where revenues and costs cannot be reliably measured at the closing date, the zero profit method is applied. this means that revenue equal to the incurred costs is recognised for the project, i.e. the profit is zero until such time as it is possible to determine the earnings. as soon as this is possible the percentage of completion method is applied. provisions are made for expected losses, i.e. when the project costs are expected to exceed the total project revenues, and these amounts are charged to earnings for the year.

the Bravida Group recognises as assets receivables (balance sheet item “accrued but not invoiced income”) from buyers of installation projects for which the project costs and recognised profits (after deducting recognised losses) exceed the invoiced amount. partially invoiced amounts that have not yet been paid by the customer and amounts withheld by the buyer are included in the item trade receivables. Bravida recognises as liabilities (balance sheet item “Invoiced but not accrued income”) any liabilities to buyers of installation contracts for projects in progress for which the invoiced amount exceeds the project costs and recognised profits (after deducting recognised losses).

Intangible assetsGoodwillGoodwill represents the difference between the cost and fair value of an acquired opera‑tion and the fair value of the Group’s share of the acquired operation’s identifiable net as‑sets at the time of acquisition. Goodwill from the acquisition of operations is recognised as an intangible asset. Goodwill is tested annually for impairment and stated at cost less accumulated impairment losses. Goodwill impairment losses are never reversed. any


noteS

gain or loss from the sale of a unit includes the divested portion of the recognised value of goodwill. In testing for impairment, goodwill is allocated to cash‑generating units.

Goodwill is thereby allocated to those cash‑generating units or groups of cash‑generating units that are expected to benefit from the acquisition giving rise to the goodwill item.

Subsequent expenditureSubsequent expenditure on an intangible asset is added to the asset’s carrying amount only if it is probable that the future economic benefits and the expenditure can be reliably measured. all other expenditure is recognised as incurred.

Depreciation and amortisationamortisation is based on the asset’s original cost less any residual value. amortisation is recognised in the income statement on a straight‑line basis over the useful life of the intangible asset, unless the asset has an indefinite useful life.assets are amortised from the date at which they became available for use. other intangible assets are amortised over 5 years. useful lives are reassessed annually or more frequently.

Property, plant and equipmentland and buildings mainly comprise warehouses and offices. all property, plant and equipment is stated at cost less depreciation. Cost includes expenditure that is directly attributable to the acquisition of the asset. any additional expenditure is added to the car‑rying amount of the asset or recognised as a separate asset only when it is probable that the future economic benefits associated with the asset will accrue to the Group and the cost can be reliably measured. the carrying amount of the replaced portion is removed from the balance sheet. all other forms of repairs and maintenance are recognised as expenses in the income statement in the periods in which they are incurred.

land is not depreciated. other assets are depreciated to allocate the cost down to the estimated residual value over the assets’ estimated useful lives.

The assets are depreciated on a straight-line basis as follows:

Useful life

Buildings 20 years

expenditure on property not owned by the company over remaining lease term

Machinery and other technical plant 3–5 years

equipment, tools and installations 3–10 years

residual values and useful lives of assets are tested at each closing date and adjusted where required. any gain or loss from the sale of an asset is determined by comparing the sale proceeds and the carrying amount, whereby the difference is recognised in other operating income or other operating expenses in the income statement.

Impairment of non-financial assetsGoodwill and other intangible assets with indefinite useful lives are tested annually to determine whether the recoverable amount, i.e. the higher of fair value less selling expenses and value in use, exceeds the carrying amount. For other non‑financial assets a similar test is made as soon as there is an indication that the carrying amount is too high. the value of an asset is written down to the recoverable amount as soon as this is shown to be lower than the carrying amount.

Leasingnon‑current assets held under a lease agreement are classified based on the economic substance of the lease. leases of non‑current assets where the economic risks and benefits associated with ownership have essentially been transferred to the Group are classified as finance leases. Finance leases are accounted for as non‑current assets at the beginning of the lease term and recognised at the lower of the fair value of the leased asset and the present value of the minimum lease payments. the corresponding payment obligations are recognised as a liability in the balance sheet. each lease payment is divided into repayment of the loan and financial expenses to obtain a fixed rate of interest for the recognised liability.

the recognised liability is included in the balance sheet item “liabilities relating to finance leases”. the interest portion of the financial expense is recognised in the income statement distributed over the term of the lease so that an amount corresponding to a fixed interest rate for the liability recognised in each accounting period is charged to the income statement in each period. non‑current assets that are held under finance leases are depreciated over their estimated useful lives. the Bravida Group has not classified any leases as finance leases. other leases are classified as operating leases. payments made during the lease term are charged to the income statement on a straight‑line basis over the term of the lease.

Financial assetsBravida classifies its financial assets into the following categories: financial assets carried at fair value through the income statement, available‑for‑sale financial assets, and loans and trade receivables. the classification depends on the purpose for which the financial asset was acquired. the classification of financial assets is determined by management upon initial recognition.

General principlesa receivable is recognised when the company has performed a service and the counterparty is contractually obliged to pay, even if an invoice has not yet been issued. trade receivables are recognised in the balance sheet when the invoice has been sent. purchases and sales of financial assets are recognised at the transaction date, which is the date when the Group undertakes to buy or sell the asset. Financial instruments are initially recognised at cost plus transaction costs, which applies to all financial assets that are not carried at fair value through the income statement. Financial assets carried at fair value through the income statement are initially recognised at fair value while the related transaction costs are recognised in the income statement. Financial assets are removed from the balance sheet when the right to receive cash flows from the instrument has expired or been transferred and the Group has transferred virtually all risks and benefits associated with ownership to another party. after the acquisition date available‑for‑sale assets and financial assets carried at fair value through the income statement are stated at fair value. loans and trade receivables are stated at amortised cost by applying the effective interest method.

at each balance sheet date the Group assesses whether there is objective evidence of impairment of a financial asset or group of financial assets, for instance that it is not probable that the debtor will be able to fulfil its obligations. Impairment tests of trade receivables are described below. examples of objective evidence include significant financial difficulties for a debtor, a breach of contract such as non‑payment or delayed payment of interest or principal, or that it is probable that the borrower will become bankrupt or enter into another form of financial reorganisation.

Financial assets/liabilities carried at fair value through the income statementFinancial assets carried at fair value through the income statement are financial assets that are held for trading. a financial asset is classified in this category if it was acquired primarily for the purpose of being sold in the short term. any derivatives are classified as held for trading if they have not been identified as hedges. an interest rate swap is stated at fair value based on future discounted cash flows, which means that the value will vary with changes in interest rates. Bravida does not meet the criteria for application of hedge accounting in accordance with IaS 39, and changes in value are therefore recognised through the income statement.

Financial assets available for salethis class of financial assets in the Group comprises assets which are not derivatives but can be sold. assets in this category are classified as non‑current assets if management does not intend to sell the asset within 12 month of the balance sheet date.

Loans and trade receivablesloans and trade receivables are financial assets that are not derivatives. they have speci‑fied or specifiable payments and are not listed on an active market. they are included in current assets, with the exception of items maturing later than 12 months from the bal‑ance sheet date, which are classified as non‑current assets. loans and trade receivables are initially stated at cost and subsequently at amortised cost by applying the effective interest method, less any provisions for impairment. a provision for impairment of trade



noteS

receivables is posted when there is objective evidence that the Group will not be able to recover all overdue amounts in accordance with the original terms and conditions for the receivables. the size of the provision is the difference between the carrying amount of the asset and the present value of estimated future cash flows. an impairment loss on trade receivables is recognised in the income statement in the function “other operating expenses” while an impairment loss on loans is recognised in financial items.

Reversal of impairment lossesImpairment losses on loan receivables and trade receivables stated at amortised cost are reversed if a later increase in the recoverable amount can objectively be attributed to an event occurring after the time at which the impairment loss was recognised.

InventoriesInventories are measured at the lower of cost and net realisable value. this also takes into account the risk of obsolescence. Cost is determined using the first‑in/first‑out method (FIFo). net realisable value is the estimated selling price in the company’s operating activities less any applicable variable selling expenses. the cost of company‑produced semi‑finished and finished goods consists of direct costs of production plus a reasonable portion of indirect costs of production. normal capacity utilisation is also taken into account in the valuation.

Cash and cash equivalentsCash and cash equivalents comprise cash and bank balances, and other short‑term investments maturing within three months of the acquisition date.

Financial liabilitiesthe Bravida Group’s financial liabilities are divided into the following categories: Finan‑cial liabilities carried at fair value through the income statement, borrowing and other financial liabilities, e.g. trade payables.

General principlesa liability is recognised when the company has a contractual obligation to pay, even if a supplier invoice has not yet been received. Supplier invoices are recognised in the state‑ment of financial position when the invoice has been received. the liability is removed when payment has been made or when a contractual obligation to pay no longer exists.

Financial liabilities carried at fair value through the income statementDerivatives with negative fair value that do not meet the criteria for hedge accounting are carried at fair value through the income statement. For information about which deriva‑tives are reported by the Bravida Group, see the section “Financial assets carried at fair value through the income statement”.

Financial liabilities carried at amortised costloans and other financial liabilities, e.g. trade payables, are included in this category. Financial liabilities are initially stated at fair value, net of transaction costs. Subsequently financial liabilities are carried at amortised cost and any difference between the amount received (net of transaction costs) and the amount repayable is recognised in the income statement over the term of the loan by applying the effective interest method. Compensa‑tion for any difference in interest upon early redemption of a loan is recognised in the income statement at the date of redemption. loan costs are charged to earnings in the period to which they refer. Dividends paid are recognised as a liability upon approval of the dividend by the annual General Meeting.

Borrowing and other financial liabilities are classified as current liabilities unless the Group has an unconditional right to defer payment of the liability for at least 12 months after the balance sheet date.

Financial income and expensesFinancial income and expenses comprise interest income on bank deposits, receivables and interest‑bearing securities, interest expenses on loans, dividend income, unrealised and realised gains and losses on financial assets and liabilities. Interest expenses are charged to earnings in the period to which they refer insofar as they have not been included in the cost of an asset.

Income taxreported income taxes include tax that is payable or due in respect of the current year, adjustments relating to current tax for previous years and changes in deferred tax. all tax liabilities and assets are valued at their nominal amounts and based on the tax rules and tax rates that have been adopted or that have been announced and are highly likely to be confirmed. Income taxes are recognised in the earnings for the year except where the underlying transaction is recognised in other comprehensive income or in equity, in which case the associated tax effects are recognised in other comprehensive income or in equity. Deferred tax is calculated in accordance with the balance sheet method for all temporary differences between the carrying amounts and tax bases of assets and liabilities. Deferred tax assets relating to unused tax loss carry‑forwards or other future tax deductions are recognised to the extent that it is probable that such deductions can be used to offset future taxable profits.

Post-employment benefitsIn Denmark all employees are covered by defined contribution plans. In Sweden most employees are covered by a defined contribution plan, but a significant number are covered by a defined benefit plan. In norway virtually all employees are covered by a defined contribution pension plan.

In a defined contribution plan the company makes fixed contributions to a separate legal entity and has no obligation to make any further contributions. Costs are charged to the consolidated income statement when the benefits are earned.

Defined benefit plans are other plans for post‑employment benefits other than defined contribution plans.

the Group’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned through their service in the current and prior periods that benefit is discounted to a present value. the discount rate is the yield at balance sheet date on high quality mortgage bonds , with a maturity corresponding to the Group’s pension obligations. the calculation is performed by a qualified actuary using the projected unit Credit Method. Moreover, the fair value of any plan assets at the reporting date. the Group’s net obliga‑tion is the present value of the obligation , less the fair value of plan assets , adjusted for any access restrictions.

the interest expense / income , net of the defined benefit obligation / asset recognized in net income under financial items. net interest income is based on the interest arising on discounting of net obligation, ie interest on the obligation , plan assets and interest on the effect of any access restrictions. other components are recognized in operating income.

revaluation effects consist of actuarial gains and losses, the difference between actual returns on plan assets and the amount included in net interest income and any amend‑ments impact access restrictions (excluding interest which is included in net interest income) . revaluation effects reported in other comprehensive income.

When the calculation leads to an asset for the Group, the recognized asset is limited to the lower of the surplus in the plan and the asset ceiling calculated using the discount rate . access restriction is the present value of the future economic benefits in the form of reduced future contributions or a cash refund. In calculating the present value of future repayments or payments taken into account any minimum funding requirement.

Changes or curtailment of a defined benefit plan are recognized on the earliest of the following dates : a , when the change in the plan or reduction occurs or b , when the company reports related restructuring costs and termination benefits. the changes / reductions are recognized immediately in net income.

this special payroll tax is part of the actuarial assumptions and are therefore reported as part of net liability / asset.

the accounting principles described above apply to the consolidated financial state‑ments. the parent company and subsidiaries report defined benefit pension plans in accordance with local rules and regulations in country concerned.

Termination benefitsa provision is recognised in connection with the termination of staff only if the company is demonstrably obliged to terminate the employment before the normal date or when compensation is paid as the result of an offer made to encourage voluntary redundancy. In the event of involuntary redundancy, the company will draw up a detailed plan specify‑ing, as a minimum, the workplace, positions and approximate number of individuals affected as well as the benefits for each category of employee or position and the date on which the plan will be implemented.


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Provisionsa provision is recognised in the balance sheet when the company has a legal or constructive obligation as a result of a past event and it is probable that an outflow of re‑sources will be required to settle the obligation and the amount can be reliably estimated.

Warranty provisiona provision is recognised when the underlying product or service has been sold. upon completion of the installation work a warranty period of 24 months normally applies. the warranty provision is calculated on the basis of previous years’ warranty expenditure and an assessment of future warranty risks.

Restructuring reservea provision is recognised when a detailed restructuring plan has been adopted and the restructuring has been initiated or publicly announced. no provision is made for future operating expenses.

Contingent liabilitiesa contingent liability is recognised when there is a possible obligation arising from past events and whose existence will be confirmed only by one or more uncertain future events, or when there is an obligation which is not recognised as a liability or provision because it is unlikely that an outflow of resources will be required.

Parent company accounting principlesthe parent company prepares its annual accounts in accordance with the Swedish annual accounts act and recommendation rFr 2 accounting for legal entities of the Swedish Financial reporting Board. rFr 2 states that the parent company’s annual accounts for the legal entity should be prepared by applying all eu‑adopted IFrS state‑ments insofar as this is possible under the Swedish annual accounts act and with regard to the relationship between accounting and taxation. the parent company prepares a statement of comprehensive income.

Differences between the Group and parent company accounting policiesDifferences between the Group and parent company accounting policies are described in the following. the stated accounting policies have been applied consistently for all periods presented in the parent company’s financial statements.

Changes to accounting policiesthe company has chosen to apply alternative rules for the reporting of Group contribu‑tions. as a result, Group contributions received/paid are recognised as appropriations

SubsidiariesInterests in subsidiaries are accounted for in the parent company using the cost method. this means that transaction costs are included in the reported value of interests in subsidi‑aries. In the consolidated financial statements, transaction costs attributable to subsidiaries are recognised directly in the consolidated income statement when they are incurred.

Contingent considerations are valued based on the probability that the consideration will be paid. any changes to the provision or receivable are added to or reduce the cost. In the consolidated financial statements, contingent considerations are stated at fair value while changes in value are passed through the income statement.

Bargain purchases which relate to future expected losses and expenses are eliminated in the periods when the expected losses and expenses are incurred. Bargain purchases which arise for other reasons are accounted for as a provision to the extent that they do not exceed the fair value of the acquired identifiable non‑monetary assets. any portion exceeding this value is recognised as income immediately. the portion which does not exceed the fair value of the acquired identifiable non‑monetary assets is recognised as income systemati‑cally over a period which is calculated based on the remaining weighted average useful life of those acquired identifiable assets that are depreciable. In the consolidated financial statements, bargain purchases are recognised directly in the income statement.

Group contributions and shareholder contributionsIn the parent company, shareholder contributions are recognised in shares and interests, insofar as no write‑down is required, and directly in equity in the receiving entity.

Group contributions received/paid are recognised as appropriations.

Leased assetsIn the parent company, all leases are accounted for in accordance with the rules for operating leases.

Presentation of the income statement and balance sheetthe parent company applies the form of presentation for income statements and balance sheets prescribed in the Swedish annual accounts act, which means that equity and provisions are reported under separate main headings in the balance sheet.

Information about the Groupthe company is a wholly owned subsidiary of Bravissima Holding aB (reg. no. 556930‑5625) with its registered office in Stockholm. the highest company in the Group that prepares consolidated financial statements is Bravissima Sweden aB, (reg. no. 556896‑0578) with its registered office in Stockholm. the consolidated financial statements are available from Bravida aB.

of the parent company’s total purchases and sales in Swedish kronor, ‑ per cent (‑) of purchases and 100 per cent (0) of sales refer to other companies in the corporate group to which the company belongs.

NOTE 2 DIStrIButIon oF reVenueS

Group1 Jan 2013

-31 Dec 20131 Aug 2012

-31 Dec 2012

Invoicing 11,148,951 5,226,056

Change in work in progress on behalf of third parties ‑68,540 ‑260,119

Net sales 11,080,411 4,965,937

Revenue by significant revenue type

Group1 Jan 2013

-31 Dec 20131 Aug 2012

-31 Dec 2012

Installation contracts 5,709,226 2,572,228

Service 5,371,185 2,393,709

Net sales 11,080,411 4,965,937

NOTE 3 SeGMent reportInG

the Group’s operations are monitored and reviewed on a geographic market basis by thechief operating decision‑maker. operationally, Bravida is organised into divisions which correspond to these geographic markets. Internal prices charged between the various segments of the Group are set based on the arm’s length principle, i.e. between parties that are independent of each other, are well informed and have an interest in en‑suring that the transactions are completed. none of the companies’ customers generate more than 5 per cent of total consolidated income. For information on non‑current assets by segment, see note 10 concerning goodwill.

Geographic marketsGeographic markets constitute the company’s operating segments. the Group’s geo‑graphic markets comprise the divisions north, Stockholm and South in Sweden, and norway and Denmark. In each geographic market, activities are conducted in the areas of electrical, heating & plumbing, HVaC and other.



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2013 North Stockholm South Norway Denmark CentralElimination

and other Total

reVenue

external net sales 2,089,332 2,071,981 3,184,001 2,375,053 1,348,798 11,247 11,080,411

Internal net sales 41,471 137,333 63,580 14,816 4,806 221,489 ‑483,495 –

Net sales1) 2,130,803 2,209,314 3,247,581 2,389,869 1,353,604 232,736 -483,495 11,080,411

operating expenses ‑1,973,630 ‑2,105,966 ‑3,063,512 ‑2,321,879 ‑1,282,496 ‑215,570 483,495 ‑10,479,558

amortisation of intangible assets – – – – ‑1,069 – – ‑1,069

Operating profit/loss 157,173 103,348 184,069 67,990 70,039 17,166 – 599,785

1) external net sales in Sweden were SeK 7,310,445,000.

2012 North Stockholm South Norway Denmark CentralElimination

and other Total

reVenue

external net sales 869,607 912,380 1,388,902 1,195,264 598,114 1,670 4,965,937

Internal net sales 7,158 36,639 7,877 3,841 2,733 97,113 ‑155,361 –

Net sales1) 876,765 949,019 1,396,779 1,199,105 600,847 98,783 -155,361 4,965,937

operating expenses ‑822,873 ‑886,608 ‑1,299,978 ‑1,136,831 ‑591,236 ‑139,505 155,361 ‑4,721,670

loss on sale of shares in subsidiaries ‑32,856 ‑32,856

amortisation of intangible assets – – – – ‑701 – – ‑701

Operating profit/loss 53,892 62,411 96,801 29,418 8,910 -40,722 – 210,710

1) external net sales in Sweden were SeK 3,172,559,000.

Fields of technologythe Group consists of the fields of technology electrical installations, heating & plumbing, HVaC and other.

2013 ElectricalHeating & plumb-

ing HVAC Other Total

external sales 5,803,178 2,970,324 1,862,361 444,549 11,080,411

2012 ElectricalHeating & plumb-

ing HVAC Other Total

external sales 2,647,059 1,319,909 796,519 202,449 4,965,936

NOTE 4 aCQuISItIon oF operatIonS

2013Bravida made the following acquisitions in 2013:

Acquired unit Division Type Acquisition date No. of employees Estimated annual sales

Heating & plumbing business, Bergen norwayassets and li‑abilities 1 Jan 2013 13 24


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Effects of acquisitions in 2013the acquisition has the following effects on consolidated assets and liabilities.

Fair value recognised in Group

other current assets 543

Current liabilities ‑900

Net identifiable assets and liabilities -357

Consolidated goodwill 3,481

Cost 3,124

Consideration recognised as a liability 1,044

Cash and cash equivalents (acquired) –

Net effect on cash and cash equivalents -2,080

Calculation of cost

Cash consideration paid 2,080


Cost 3,124

2012Bravida made the following acquisitions in 2012:

Acquired unit Division TypeAcquisi-tion date

No. of em-

ployees

Estimated annual

sales

electrical installation business, Bodö norway

Company 91% September 16 23

Heating & plumbing business, Stockholm Stockholm Company December 45 67

If the acquisitions had taken place at 1 January, consolidated net sales and the consoli‑dated operating profit would have increased by less than 1 per cent.

at the end of the year a sheet‑metal workshop in Denmark was sold with no impact on earnings. the business generated net sales of about SeK 9 million in the past year and posted a strongly negative result. a company with no operations has also been sold in norway with an impact on earnings of SeK ‑32.5 million. the reason for the sale was that the investment did not live up to the Group’s expectations.

Effects of acquisitions in 2012the acquisition has the following effects on consolidated assets and liabilities.

Fair value recognised in Group

other non‑current assets 447

other current assets 10,581

Cash and cash equivalents 17,227

Current liabilities ‑27,031

Net identifiable assets and liabilities 1,224

Consolidated goodwill 49,593

Cost 50,817

Consideration recognised as a liability ‑46,624

Cash and cash equivalents (acquired) ‑17,227

Net effect on cash and cash equivalents -13,034

Calculation of cost

Cash consideration paid 4,193


Cost 50,817

NOTE 5 eMployeeS, StaFF CoStS anD CoMpenSatIon to SenIor eXeCutIVeS

Average number of employees

1 Jan 2013-31 Dec 2013

of whichwomen

1 Aug 2012-31 Dec 2012

of whichwomen

parent CoMpany

Sweden 0 0.0% – 0.0%

Total in parent company 0 0.0% – 0.0%

SuBSIDIarIeS

Sweden 4,840 3.7% 2,095 3.9%

norway 1,944 5.8% 501 7.5%

Denmark 1,176 7.4% 793 5.8%

Slovakia 7 0.0% 3 0.0%

Total in subsidiaries 7,967 4.7% 3,393 4.9%

Total, Group 7,967 4.7% 3,393 4.9%

Breakdown between men and women in management 31 Dec 2013 31 Dec 2012

Female representation

parent CoMpany

the Board of Directors 0.0% 0.0%

other senior executives 0.0% 0.0%

total, Group

the Board of Directors 0.0% 0.0%

other senior executives 0.0% 0.0%

Salaries, other com-pensation and social security contributions 1 Jan 2013 – 31 Dec 2013 1 Aug 2012 – 31 Dec 2012

Salaries and compensation

Social security

contributionsSalaries and

compensation

Social security

contributions

parent CoMpany 589 158 – –

(of which pension costs) (81) (–) (–) (–)

SuBSIDIarIeS 4,161,745 806,858 1,817,123 354,402

(of which pension costs) (272,792) (35,451) (92,320) (15,438)

Total, Group 4,162,334 807,016 1,817,123 354,402

(of which pension costs) (272,873) (35,451) (92,320) (15,438)



noteS

Salaries and other compen-sation by country and broken down between Directors etc. and other employees 1 Jan 2013 – 31 Dec 2013 1 Aug 2012 – 31 Dec 2012

Board, CEO and

other senior executives1

Other em-ployees

Board, CEO and

other senior executives1

Other employees

parent CoMpany

Sweden – 589 – –

(of which bonuses, etc.) (–) (–) (–) (–)

SuBSIDIarIeS

Sweden 26,156 2,396,274 – 1,070,666

(of which bonuses, etc.) (6,955) (53,545) (–) (22,298)

norway 2,352 1,094,363 4,575 482,000

(of which bonuses, etc.) (–) (16,233) (2,373) (6,183)

Denmark 3,204 637,112 2,566 254,821

(of which bonuses, etc.) (619) (6,204) (1,317) (2,236)

Slovakia – 2,284 – 2,497

(of which bonuses, etc.) (–) (–) (–) (–)

Subsidiaries, total 31,712 4,130,033 7,141 1,809,984

(of which bonuses, etc.) (7,574) (75,982) (3,690) (30,717)

Total, Group 31,712 4,130,622 7,141 1,809,984

(of which bonuses, etc.) (7,574) (75,982) (3,690) (30,717)

1) During these years, the Group’s other senior executives consisted of 7 persons (8).

Senior executives’ benefitsthe compensation paid to senior executives refers mostly to fixed salaries and variable compensation. the Ceo’s contract is subject to six months’ notice. In case of termination, the Ceo has a right to severance pay in the amount of 12 months’ salary in addition to the notice period. the contracts of other senior executives are subject to six months’ notice. the Ceo and other senior executives have a contractual right to an occupational pension.

Compensation and other benefits during 2013 Basic salary/Board feesVariable compensation Other benefits Pension expenses Total

Director Jay Corrigan – – – – –

Director Jan Johansson – – – – –

Director Michel plantevin – – – – –

Director Ivano Sessa – – – – –

Director Michael Siefke – – – – –

Director Marc Valentiny – – – – –

Ceo Staffan påhlsson 4,132 2,283 0 1,142 7,557

Former Ceo, Mats o paulsson 3,865 – – 833 4,698

other senior executives1) 15,406 5,291 735 3,301 24,732

23,403 7,573 735 5,276 36,988

1) During the year, the Group’s other senior executives consisted of 8 persons.

Compensation and other benefits during 2012 Basic salary/Board feesVariable compensation Other benefits Pension expenses Total

Director Marc Valentiny – – – – –

Director Ivano Sessa – – – – –

Ceo Staffan påhlsson1) 1,077 945 – 413 2,435

Former Ceo, Mats o paulsson1) 1,439 – 38 566 2,043

Former Ceo, torbjörn torell 1,442 – – – 1,442

other senior executives2) 5,379 5,200 175 2,032 12,786

9,337 6,145 213 3,011 18,706

1) Staffan påhlsson took up the post on 21 September 2012.2) During the year, the Group’s other senior executives consisted of 7 persons.


noteS

NOTE 6 auDItorS' FeeS anD eXpenSeS

Group Parent company

1 Jan 2013-31 Dec 2013

1 Aug 2012-31 Dec 2012

1 Jan 2013-31 Dec 2013

25 Apr 2012-31 Dec 2012

KPMG

audit engagement 3,313 1,530 625 –

audit assignments in addition to audit engagement 1,249 – 1,160 –

tax advice 64 – – –

other assignments 2,892 480 820 –

Other

other assignments, ernst & young 1,245 – 282 –

other assignments, other 131 300 – –

8,894 2,310 2,887 –

NOTE 7 operatInG eXpenSeS By FunCtIon oF eXpenSe


1 Jan 2013-31 Dec 2013

1 Aug 2012-31 Dec 2012

1 Jan 2013-31 Dec 2013

25 Apr 2012-31 Dec 2012

Costs for materials 3,172,736 1,495,896 – –

Subcontractors and purchased services in production 1,206,190 439,734 – –

Staff costs 4,969,346 2,216,391 747 –

Depreciation and amortisation 12,615 5,644 – –

Vehicle expenses 319,068 139,667 – –

premises expenses 194,558 78,242 71 –

Consulting fees 77,013 44,026 2,707 –

It expenses and telephony 90,740 47,627 – –

travel expenses 38,579 19,552 13 –

other operating expenses 399,781 235,592 1,037 –

loss on sale of shares in subsidiaries – 32,856 – –

10,480,626 4,755,227 4,575 –

NOTE 8 net FInanCIal InCoMe/eXpenSe


1 Jan 2013-31 Dec 2013

1 Aug 2012-31 Dec 2012

1 Jan 2013-31 Dec 2013

25 Apr 2012-31 Dec 2012

FInanCIal InCoMe

Interest income, Group companies – – 114,379 116,358

Interest income, other 56,073 1,247 54,758 –

Gains on currency futures transactions – 126,431 – 126,431

Foreign exchange gains 7,644 5,421 – –

Interest on arrears 3,045 1,601 – –

reassessment of derivatives 77,269 – – –

other 559 2,082 – –

144,590 136,782 169,137 242,788

FInanCIal eXpenSeS

Interest expense, other ‑307,586 ‑110,877 ‑225,177 ‑102,515

Foreign exchange losses ‑108,376 ‑8,573 ‑82,276 ‑5,635

Interest on arrears ‑1,643 ‑542 – –

acquisition costs – ‑199,647 – –

other ‑105,432 ‑185,918 ‑94,768 ‑179,638

-523,037 -505,557 -402,221 -287,788

Net financial income/expense -378,447 -368,775 -233,084 -45,000



noteS

NOTE 9 taX


1 Jan 2013-31 Dec 2013

1 Aug 2012-31 Dec 2012

1 Jan 2013-31 Dec 2013

25 Apr 2012-31 Dec 2012

Current taX eXpenSe (‑)/taX InCoMe (+)

tax expense for the period ‑11,871 23,685 – –

adjustment of tax in respect of prior years 4 ‑44 – –

-11,867 23,641 – –

DeFerreD taX eXpenSe (‑)/taX InCoMe (+)

Deferred tax arising from temporary differences ‑32,970 ‑13,654 – –

Deferred tax relating to changes in tax rates ‑2,277 6,546 – –

Deferred tax income in tax loss carry‑forwards recognised during the year 69,208 71,623 51,923 9,900

Deferred tax liability resulting from utilisation of previously recognised taxable value in tax loss carry‑forwards ‑69,177 ‑59,536 – –

Deferred tax relating to untaxed reserves ‑405 ‑8,677 – –

-35,621 -3,698 51,923 9,900

Total recognised tax expense/tax income -47,488 19,943 51,923 9,900

reConCIlIatIon oF eFFeCtIVe taX

earnings before tax 221,338 ‑158,065 51,923 11,835

tax at tax rate applying to parent company ‑48,694 41,571 – –

effect of different tax rates for foreign subsidiaries ‑4,046 ‑1,646 – –

Group adjustment of foreign exchange differences internal loans 9,774 ‑398 – –

other non‑deductible expenses ‑8,876 ‑19,726 – –

Deductible items not affecting earnings 1,385 1,680 – –

non‑taxable income 5,572 5,090 – –

recognition of temporary differences without corresponding recognition of deferred tax in respect of prior years – ‑363 – –

use of tax loss carry‑forwards 66 – – –

tax in respect of prior years 4 ‑41 – –

Standard interest on tax allocation reserve ‑396 ‑434 – ‑1,935

effect of changed tax rates ‑2,277 ‑5,012 – –

Deferred tax assets in respect of prior years – ‑778 – –

Recognised effective tax -47,488 19,943 -51,923 -9,900


noteS

Reported deferred tax assets and liabilities Deferred tax assets and liabilities are attributable as follows:

31 Dec 2013 31 Dec 2012

GroupDeferred tax

assetDeferred tax

liability Deferred tax

assetDeferred tax

liability

Intangible assets – ‑297 – ‑360

property, plant and equipment 5,144 – 5,106 –

Inventories 741 – 803 –

trade receivables 6,124 – 8,704 –

pension provisions – ‑22,239 27,450 –

provisions for projects – ‑81,197 – ‑70,534

Warranty provisions 13,518 – 13,422 –

other provisions 1,738 – 4,581 –

tax allocation reserves – ‑38,876 – ‑39,185

other 39,951 – 51,544 –

tax loss carry‑forwards 145,089 – 155,907 –

212,305 -142,609 267,517 -110,079

Net asset 69,696 157,438

Sweden has a corporate tax rate of 22.0 per cent (26.3). norway has a corporate tax rate of 28.0 per cent (28.0), which will be reduced to 27.0 per cent in 2014. Denmark has a corporate tax rate of 25.0 per cent (25.0), which will be reduced to 24.5 per cent in 2014.

forwards

Group 2013Amount at

1 Jan 2013Recognised in

profit/loss for the yearRecognised in other

comprehensive incomeTranslation difference

Acquisition/saleof company

Amount at31 Dec 2013

tax loss carry‑forwards 155,908 31 ‑10,850 145,089

untaxed reserves ‑39,185 309 ‑38,876

property, plant and equipment 5,106 352 ‑314 5,144

trade receivables 8,704 ‑2,071 ‑509 6,124

provisions for projects ‑70,534 ‑13,115 2,452 ‑81,197

Warranty provisions 13,422 509 ‑413 13,518

pensions 27,449 8,902 ‑62,482 3,892 ‑22,239

Derivatives – ‑16,445 15,432 ‑1,013

other 56,568 ‑14,093 671 43,146

Total 157,438 -35,621 -47,050 -5,071 0 69,696

Group 2012Amount at

1 Jan 2012Recognised in

profit/loss for the yearRecognised in other

comprehensive incomeTranslation difference

Acquisition/saleof company

Amount at31 Dec 2012

tax loss carry‑forwards 15,076 140,832 155,908

untaxed reserves ‑1,260 ‑37,925 ‑39,185

property, plant and equipment ‑1,479 6,585 5,106

trade receivables 5,801 2,903 8,704

provisions for projects ‑14,558 ‑55,976 ‑70,534

Warranty provisions ‑1,391 14,813 13,422

pensions ‑4,435 31,884 27,449

other ‑1,452 58,020 56,568

Total 0 -3,698 0 0 161,136 157,438


31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

SpeCIFICatIon By Country

Sweden 13,740 67,072 61,823 9,900

norway 90,789 116,544 – –

Denmark ‑34,833 ‑26,178 – –

69,696 157,438 61,823 9,900

Change in deferred tax in temporary differences and tax loss carry-



noteS

Impairment tests for cash-generating units containing goodwillthe following cash‑generating units have significant recognised goodwill values in relation to total goodwill values recognised in the consolidated financial statements:

Group 31 Dec 2013 31 Dec 2012

Sweden 4,504,844 4,503,129

norway 1,424,083 1,448,791

Denmark 803,876 792,561

6,732,803 6,744,481

units without significant goodwill values 0 0

6,732,803 6,744,481

Impairment of goodwillFor those cash‑generating units where the recoverable amount has been calculated and no impairment has been identified, management deems that no reasonably possible changes in key assumptions would cause the recoverable amount to fall below the carrying amount.

Method for calculating the recoverable amount For all goodwill values the recoverable amount has been determined by calculating value in use for the cash‑generating unit. the model of calculation is based on the discounting of future expected cash flows in relation to carrying amounts for the unit. Future cash flows are based on five‑year forecasts produced by the management for each cash‑generating unit. Impairment tests of goodwill are based on the assumption of a perpetual horizon and the extrapolation of cash flows for the years after the forecasting period has been based on a growth rate of 2‑3 per cent from year 6.

Key variables for calculating value in use:the following variables are material and common for all cash‑generating units in calculating value in use.

Sales: the competitiveness of the business, expected trends in the construction sector, general socio‑economic trends, central and local government investment plans, interest rates, and local market conditions.

Operating margin: Historical profitability levels and efficiency in the business, access to key individuals and qualified labour, skills in dealing with customers/customer relationships, access to internal resources, trends in expenses for salaries, materials and subcontractors.

Working capital requirements: an assessment in each individual case of whether the working capital reflects the operational requirements or needs to be adjusted for the forecasting periods. For the trend going forward, a reasonable or cautious assumption is that working capital will track sales growth.

Investment needs: Investment needs in the businesses are assessed based on the investments required to achieve the forecast cash flows from the baseline, i.e. without investments for expansion. normally, the level of investment has corresponded to the rate of depreciation of property, plant and equipment.

Tax burden: the tax rate in the forecasts is based on Bravida’s expected tax situation in each country in respect of tax rates, tax loss carry‑forwards, etc.

Discount rate: Forecast cash flows and residual values are discounted to present value using the weighted average cost of capital (WaCC). the interest rate paid on borrowed capital is defined as the average interest rate on consolidated net debt. the required rate of return on equity is defined using the capital asset pricing model (CapM). Calculations of value in use are based on a weighed discount rate before tax of just over 8 per cent.

NOTE 10 IntanGIBle aSSetS

Group 31 Dec 2013 GoodwillOther

intangible Total

aCCuMulateD CoSt

at beginning of year 6,752,125 7,204 6,759,329

purchases 9,594 285 9,879

Foreign exchange differences for the year ‑21,272 205 ‑21,067

At end of year 6,740,447 7,694 6,748,141

aCCuMulateD SCHeDuleD aMortISatIon

at beginning of year – ‑2,694 ‑2,694

Scheduled amortisation for the year – ‑1,069 ‑1,069

Foreign exchange differences for the year – ‑62 ‑62

At end of year – -3,825 -3,825

aCCuMulateD IMpaIrMent

at beginning of year ‑7,644 – ‑7,644

At end of year -7,644 – -7,644

Carrying amount at beginning of period 6,744,481 4,510 6,748,991

Carrying amount at end of period 6,732,803 3,869 6,736,672

Group 31 Dec 2012 GoodwillOther

intangible Total

aCCuMulateD CoSt

at beginning of year – – –

acquisition of subsidiaries 6,724,322 2,000 6,726,322

purchases 69,848 5,269 75,117

Foreign exchange differences for the year ‑42,045 ‑65 ‑42,110

At end of year 6,752,125 7,204 6,759,329

aCCuMulateD SCHeDuleD aMortISatIon


acquisition of subsidiaries – ‑2,000 ‑2,000

Scheduled amortisation for the year – ‑702 ‑702

Foreign exchange differences for the year – 8 8

At end of year – -2,694 -2,694

aCCuMulateD IMpaIrMent


Acquisition of subsidiaries -7,644 – -7,644

At end of year -7,644 – -7,644

Carrying amount at beginning of period – – –

Carrying amount at end of period 6,744,481 4,510 6,748,991


noteS

NOTE 11 property, plant anD eQuIpMent

Group 31 Dec 2013Buildings and land

Machinery and equipment Total

aCCuMulateD CoSt

at beginning of year 2,946 148,319 151,265

purchases 51 12,942 12,993

Sales and disposals – ‑3,962 ‑3,962

reclassifications – 169 169

Foreign exchange differences for the year – ‑2,794 ‑2,794

2,997 154,674 157,671

aCCuMulateD SCHeDuleD DepreCIatIon

at beginning of year ‑820 ‑114,150 ‑114,970

Sales and disposals – 3,739 3,739

reclassifications – ‑118 ‑118

Scheduled depreciation of cost for the year ‑93 ‑11,519 ‑11,612

Foreign exchange differences for the year – 2,827 2,827

-913 -119,221 -120,134

Carrying amount at end of period 2,084 35,453 37,537

Group 31 Dec 2012Buildings and land

Machinery and equipment Total

aCCuMulateD CoSt


purchases – 14,862 14,862

acquisition of subsidiaries 2,946 153,403 156,349

Sales and disposals – ‑18,271 ‑18,271

reclassifications – ‑4 ‑4

Foreign exchange differences for the year – ‑1,671 ‑1,671

2,946 148,319 151,265

aCCuMulateD SCHeDuleD DepreCIatIon


acquisition of subsidiaries ‑726 ‑126,362 ‑127,088

Sales and disposals – 16,008 16,008

Scheduled depreciation of cost for the year ‑94 ‑4,849 ‑4,943

Foreign exchange differences for the year – 1,053 1,053

-820 -114,150 -114,970

Carrying amount at end of period 2,126 34,169 36,295

NOTE 12 IntereStS In aSSoCIateS

Group 31 Dec 2013 31 Dec 2012

aCCuMulateD CoSt

at beginning of year 3,773 –

acquisition of subsidiaries – 1,051

added during the year 1,450 1,800

Sales 188 –

Share in profit of associates 4,310 922

Dividends for the year ‑3,125 –

adjustments for previous years ‑211 –

Foreign exchange differences for the year ‑27 –

Carrying amount at end of period 6,358 3,773



noteS

Specification of interests in associates

31 Dec 2013

Associate, reg.no., regd officeProfit/loss for the year

at the company Owned share, %Consolidated value of

capital share Carrying amount

Kraftkompaniet Sverige HB, 969740‑4755, Stockholm 9,166 50% 4,583 5,412

Svensk Berg energi HB, 969753‑2852, Stockholm ‑225 50% 783 783

Forenede & Mosness Installasjon aS, 991 008 195, oslo, norway 205 50% 181 163

5,547 6,358

31 Dec 2012

Associate, reg.no., regd officeProfit/loss for the year

at the company Owned share, %Consolidated value of

capital share Carrying amount

Kraftkompaniet Sverige HB, 969740‑4755, Stockholm 3,067 50% 3,125 3,125

tunnelentreprenad Bravida‑eIaB HB, 969669‑7862, Stockholm 6 50% ‑188 ‑188

Svensk Berg energi HB, 969753‑2852, Stockholm ‑1,846 50% 655 655

Forenede & Mosness Installasjon aS, 991 008 195, oslo, norway 173 50% 92 181

3,684 3,773

NOTE 13 penSIon aSSetS anD proVISIonS For penSIonS anD SIMIlar oBlIGatIonS

In Sweden there are pension plans covering all employees. Most of these are defined contribution plans. White‑collar employees are covered by a defined benefit pension plan, which is accounted for in the Group in accordance with IaS 19.

the pension plan in norway has been amended. previously, employees of Siemens Installation aS, which the company acquired in 2009, had a defined benefit pension plan. In 2010 the employees were transferred to the same pension plan as other Bravida employees in norway, which is a defined contribution pension plan. the old plan still applies for a small number of employees, however. Denmark has a defined contribution pension plan.

Number of people covered by the IAS 19 calculation

31 Dec 2013 Parent company Other Sweden Norway Denmark Total

active – 969 25 – 994

Former employees, not retired – 2,551 – – 2,551

retired – 2,817 34 – 2,851

Total – 6,337 59 – 6,396

31 Dec 2012 Parent company Other Sweden Norway Denmark Total

active – 1,024 70 – 1,094

Former employees, not retired – 2,692 – – 2,692

retired – 2,698 43 – 2,741

Total – 6,414 113 – 6,527


noteS

Defined benefit obligations and the value of plan assets

Group 31 Dec 2013 31 Dec 2012

present value of fully or partly funded obligations ‑1,186,217 ‑1,317,792

Fair value of plan assets 1,255,506 1,194,569

Total fully or partly funded obligations 69,289 -123,223

present value of unfunded defined benefit obligations ‑15,406 ‑17,249

Net obligations before adjustments 53,883 -140,472

adjustments:

payroll tax 16,012 ‑30,895

Total 69,895 -171,367

the net amount is recognised in the following items in the balance sheet:

pension assets 85,220 –

provisions for pensions and similar obligations ‑15,325 ‑171,367

Total 69,895 -171,367

the net amount is distributed among plans in the following countries:

Sweden 60,908 ‑158,323

norway 8,987 ‑13,044

Total 69,895 -171,367

Changes in the present value of the obligation for defined benefit plans

Group 31 Dec 2013 31 Dec 2012

obligation for defined benefit plans at 1 Jan 1,338,951 1,258,474

Cost of vested benefits during period 31,613 11,754

Interest expense 40,067 18,355

pension payments ‑51,766 ‑24,827

actuarial (gain) / loss ‑151,484 65,922

Foreign exchange differences ‑5,760 9,273

Obligation for defined benefit plans at 31 Dec 1,201,621 1,338,951

Changes in fair value of plan assets

Group 31 Dec 2013 31 Dec 2012

Fair value of plan assets at 1 Jan 1,194,569 1,155,743

Interest recognised in the income statement 35,498 25,697

Withdrawn ‑50,708 ‑23,607

Insurance premium (‑) paid from plan assets ‑82 ‑417

paid in 2,169 2,550

return on plan assets excluding interest income 80,651 29,959

Foreign exchange differences ‑6,590 4,644

Fair value of plan assets at 31 Dec 1,255,507 1,194,569

Cost recognised in the income statement

Group 31 Dec 2013 31 Dec 2012

Costs relating to service during current period ‑31,594 ‑11,754

Insurance premium (‑) paid from plan assets ‑82 ‑977

Interest expense on obligation ‑4,569 ‑18,355

payroll tax ‑8,590 ‑1,142

Net expense in profit/loss for the year -44,835 -32,228

the cost for pensions is recognised as an administrative expense in the income statement.



noteS

31 Dec 2013 31 Dec 2013 31 Dec 2012 31 Dec 2012

Group Pension assets Pension obligations Pension assets Pension obligations

Defined benefit pension plans 85,220 ‑898 – ‑128,515

prI – ‑14,427 – ‑19,992

endowment policies 37,891 ‑47,083 40,535 ‑50,368

other – – – ‑53

123,111 -62,408 40,535 -198,928

Actuarial assumptionsthe following significant actuarial assumptions have been applied in calculating the obligations: (weighted average values)

Sweden Norway

31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

Discount rate 3.75% 3.00% 2.60% 3.90%

expected return on plan assets for coming year 3.00% 3.00% 4.10% 4.00%

assumed long‑term salary increases 3.00% 3.00% 3.50% 3.50%

long‑term increase in income base amount 3.00% 3.00% – –

assumed long‑term inflation 2.00% 2.00% – –

expected increase in base amount – – 3.25% 3.25%

Future increase in pensions – – 0.10% 0.20%

the actuarial assumptions are based on commonly used assumptions relating to demographic factors and termination of employment. as of the actuarial calculations for 2007, new mortality assumptions (longer life expectancy) have been taken into account.

Historical information

Group 31 Dec 2013 31 Dec 2012

present value of defined benefit obligation ‑1,201,621 ‑1,338,951

Fair value of plan assets 1,255,507 1,194,567

Surplus/deficit in plan 53,886 -144,384

Group 31 Dec 2013 31 Dec 2012

of which credit‑insured via FpG/prI 21,004 20,253

Pledged assets for pension obligations

Group 31 Dec 2012 31 Dec 2010

Capitalised endowment policy 37,891 40,535

37,891 40,535


noteS

NOTE 14 otHer SeCurItIeS HelD aS non‑Current aSSetS


31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

aCCuMulateD CoSt

at beginning of year 48,374 – – –

purchases – 200 – –

acquisition of subsidiaries – 51,142 – –

Sales and disposals ‑100 ‑120 – –

Change in endowment policies ‑2,643 ‑2,717 – –

Changes in value 381 ‑132 – –

Foreign exchange differences for the year 17 – – –

Carrying amount at end of period 46,029 48,374 – –

SpeCIFICatIon oF SeCurItIeS

Funds, endowment policies 37,891 40,535 – –

tenant‑owner apartment 6,600 6,600 – –

other 1,538 1,239 – –

46,029 48,374 – –

the above securities are not stated at market value with changes in earnings recognised through the income statement.

NOTE 15 lonG‑terM reCeIVaBleS anD otHer reCeIVaBleS

Group 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

lonG‑terM reCeIVaBleS tHat are non‑Current aSSetS

Market valuation of derivatives 57,670 – – –

Deposit rent for premises 11,280 12,118 – –

other 2,005 2,224 – –

70,955 14,342 – –

lonG‑terM reCeIVaBleS tHat are Current aSSetS

receivable, pension funds 12,620 9,168 – –

Value‑added tax receivable 1 17 544 –

other 11,717 22,224 33 –

24,338 31,409 577 –

NOTE 16 traDe reCeIVaBleS

trade receivables are accounted for after taking account of bad debts, which were SeK 25,500,000 (‑47,522,000) in the Group. Bad debts in the parent company were SeK 0 (0). Bad debts consist of actual and expected bad debts. See also note 26 for information on credit risks and maturity structure.

NOTE 17 aCCrueD But not InVoICeD InCoMe

Group 31 Dec 2013 31 Dec 2012

accrued income from work not yet completed 4,705,759 4,840,497

Invoicing of work not yet completed ‑3,944,343 ‑4,077,882

761,416 762,615

accrued income from installation projects in progress are recognised in accordance with the percentage of completion method. the degree of completion is defined as project expenditure incurred at the end of the period compared with the total project cost corresponding to the project income.

In the balance sheet, installation projects are recognised gross on a project by project basis, either as accrued but not invoiced income in current assets or as Invoiced but not accrued income in current liabilities. projects for which the accrued income exceeds the amount invoiced are recognised as an asset while projects for which the amount invoiced exceeds the accrued income are recognised as a liability.

NOTE 18 prepayMentS anD aCCrueD InCoMe


31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

prepaid rents 19,806 18,952 – –

prepaid insurance premiums 929 12 727 –

prepaid leasing fees 4,668 786 – –

accrued income 110,819 113,463 – –

other items 12,988 19,780 – –

149,210 152,993 727 –

NOTE 19 SHort‑terM InVeStMentS anD reStrICteD FunDS

Group 31 Dec 2013 31 Dec 2012

Current investments – 19

restricted funds – 2,639

Cash and cash equivalents in external consortiums – 414

– 3,072

NOTE 20 eQuIty

Parent company 31 Dec 2013 31 Dec 2012

nuMBer oF SHareS

opening number of shares 403,083,246 50

Split – 4,950,000

new share issue – 377,301,983

non‑cash issue 20,831,213

Closing number of shares 403,083,246 403,083,246

the share relates to a class and each share entitles the holder to one vote.



noteS

Specification of equity item reserves:

Group 31 Dec 2013 31 Dec 2012

tranSlatIon reSerVe

opening translation difference 17,610 –

translation differences for the year, foreign subsidiaries ‑17,680 17,610

Closing translation difference -70 17,610

Specification of equity item reserves:

Group 31 Dec 2013 31 Dec 2012

HeDGInG reSerVe

opening translation difference – –

Hedging reserve for the year ‑70,145

Closing translation difference -70,145 –

Translation reservethe translation reserve includes all foreign exchange differences arising from the trans‑lation of financial statements of foreign operations for which the financial statements have been prepared in a different currency than the currency in which the consolidated financial statements are presented. the parent company and Group present their financial statements in Swedish kronor. the translation reserve also includes foreign exchange differences arising from expanded investments in foreign operations as well as loans received from foreign operations.

Retained earnings including profit/loss for the yearretained earnings including profit/loss for the year includes profits earned in the parent company and its subsidiaries and associates. previous transfers to the statutory reserve, excluding transfers from share premium accounts, and previous equity method reserves are included in this equity item.

Dividendafter the balance sheet date, the Board of Directors and Chief executive officer have proposed the following dividend payment. the dividend will be put forward for adoption at the annual General Meeting on 13 March 2014.

a cash dividend of SeK 1,240,438 per share (‑), totalling SeK 500,000,007 (‑), calculated on the basis of the number of registered shares. the total dividend payment is calculated on the basis of the number of outstanding shares at the dividend date.

Capital managementBravida aims to maintain a good capital structure and financial stability. this creates a stable foundation for the company’s continued business activities, which creates oppor‑tunities to retain existing owners and attract new owners. a good capital structure should also help to ensure that relationships with the Group’s creditors evolve in a way that is beneficial for all parties. Capital is defined as equity and refers to equity attributable to holders of interests in the parent company.

one of Bravida’s financial targets is an equity/assets ratio (equity divided by total as‑sets) in excess of 25 per cent. the Board deems that this level is appropriate for Bravida’s operations in the service and installation markets in Sweden, norway and Denmark. the target is a part of the Group’s strategic planning. If the equity/assets ratio is expected to permanently exceed this level, capital should be transferred to the shareholders in an appropriate form. at year‑end 2013, the equity/assets ratio was 49.4 per cent (55.1). the Board’s ambition is to maintain a balance between a high return on equity, which can be achieved through increased leverage, and the benefits and security afforded by a higher share of equity.

In addition to regular dividend payments, special dividends may be proposed if the Board deems that funds are available that are not required for the development of the Group.

Bravida’s loan agreements specify key financial performance indicators (covenants) that the Group is required to meet, which is customary for this type of loan. at year‑end, Bravida was meeting these covenants by a wide margin.

Parent companyRestricted funds restricted funds may not be reduced through the payment of dividends.

Non-restricted equityretained earnings and the profit or loss for the year make up non‑restricted equity, i.e. the amount that is available for dividend payments to the shareholders.

Retained earningsretained earnings consist of retained earnings from the year plus the profit or loss less dividends paid during the year.

Earnings per share

Parent company1 Jan 2013

-31 Dec 20131 Jan 2012

-31 Dec 2012

profit/loss for the year ‑184,093 ‑35,100

average number of shares before and after dilution, thousands 403,083 403,083

earnings per share before and after dilution, SeK ‑0.46 ‑0.09

proposed dividend, SeK 500,000,007 –


noteS

NOTE 21 IntereSt‑BearInG lIaBIlItIeS

the following is a presentation of the contractual terms applying to the company’s interest‑bearing liabilities. For more information about the company’s exposure to interest risk and the risk of changes in exchange rates, see note 27.


31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

non‑Current lIaBIlItIeS

Bond loan 3,312,175 – 3,312,175 –

Bank loans – 2,804,000 – 2,804,000

other – 10,071 – –

3,312,175 2,814,071 3,312,175 2,804,000

Current lIaBIlItIeS

Current bank loans – 50,000 – –

– 50,000 – –

amount out of liability item that is expected to be paid within 12 months of balance sheet date. – 50,000 – –

amount out of liability item that is expected to be paid later than 5 years from balance sheet date – – – –

the liabilities are subject to certain covenants relating to the company’s earnings and financial position.

See table below for covenants and repayment periods.

2013 2012

Maturity Nom. interest Nom. value Carr. amount Nom. value Carr. amount

Bank loans, SeK‑denominated 2013 6.3% – – 50,000 50,000

Bank loans, SeK‑denominated 2018 6.1% – – 2,804,000 2,804,000

Bond loan, SeK‑denominated 2019 6.4% 1,300,000 1,300,000

Bond loan, eur‑denominated 2019 5.3% 225,000 2,012,175

other loans – 10,071 10,071

Total interest-bearing liabilities 3,312,175 2,814,071 2,814,071

the liabilities are subject to certain covenants relating to the company’s earnings and financial position. For more information about loans, see also note 27, which also provides a description of derivatives related to the bond loans.

Credit limits


31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

Credit limit granted 450,000 1,150,000 150,000 –

undrawn portion ‑450,000 ‑1,100,000 ‑150,000 –

Credit drawn – 50,000 – –

CreDIt lIMIt GranteD, By Country

SwedenSeK '000 450,000 1,150,000 150,000 –

Total credit limit grantedSEK '000 450,000 1,150,000 150,000 –



noteS

Assets pledged as collateral for liabilities to credit institutions


31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

property mortgages 1,800 1,800 – –

Floating charges 999,100 1,019,100 – –

Shares in subsidiaries 15,050,030 8,746,153 3,672,582 3,672,582

trade receivables 445,951 474,033 – –

16,496,881 10,241,086 3,672,582 3,672,582For pledged assets, see also note 29.

NOTE 22 proVISIonS


31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

proVISIonS tHat are non‑Current lIaBIlItIeS

Warranties 34,602 37,562 – –

34,602 37,562 – –

proVISIonS tHat are Current lIaBIlItIeS

Warranties 34,602 37,562 – –

Disputes 17,915 8,664 – –

provision for vacant premises 1,803 3,027 – –

Costs of restructuring 17,240 19,003 – –

provision for project losses 10,159 4,864 – –

other 35,970 49,746 – –

117,689 122,866 – –

Change in provisions 2013 Warranties Disputes Empty premisesRestructuring

measuresProvision for project

losses and other Total

Carrying amount at the beginning of the year 75,124 8,664 3,027 19,003 54,610 160,428

provisions made during the period 47,165 16,716 516 18,107 72,205 154,709

amount used during the period ‑52,339 ‑7,791 ‑1,838 ‑19,954 ‑79,357 ‑161,279

provisions in acquired companies – – – – – –

Foreign exchange differences ‑746 326 98 84 ‑1,329 ‑1,567

Carrying amount at end of year 69,204 17,915 1,803 17,240 46,129 152,291

Change in provisions 2012 Warranties Disputes Empty premisesRestructuring

measuresProvision for project

losses and other Total

Carrying amount in acquired companies at 31 Jul 70,289 6,186 2,008 7,852 31,197 117,532

provisions made during the period 26,748 2,147 3,049 19,390 61,469 112,803

amount used during the period ‑26,863 – ‑2,068 ‑8,295 ‑44,917 ‑82,143

provisions in acquired companies 4,035 – – – 6,804 10,839

Foreign exchange differences 915 331 38 56 57 1,397

Carrying amount at end of year 75,124 8,664 3,027 19,003 54,610 160,428


31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

amount out of provision that is expected to be paid within 12 months. 117,689 122,866 – –


noteS

Warrantiesrefers to the expected cost of correcting errors and defects in respect of completed projects that occur during the warranty periods for the projects. the outflow of resources takes place during the warranty periods for the projects, which normally range from two to five years. as the effect of when payment is made is not material expected future outgoing payments are not discounted to present value.

Disputesthe provision is based on an individual risk assessment for unresolved disputes at the balance sheet date.

Empty premiseslinked to the restructuring and coordination of operations, a provision has been made for empty premises. account has been taken of the possibility of sub‑letting the premises or terminating the contracts prematurely.

Restructuring measuresrestructuring measures include items such as costs for staff reductions. a provision is recognised when a detailed restructuring plan has been adopted and the restructuring has been initiated or publicly announced. no provision is made for future operating expenses.

Loss provision, contractsInstallation projects are accounted for in accordance with the percentage of completion method. Individual provisions are made for expected losses, i.e. when the project costs are expected to exceed the total project income.

NOTE 23 InVoICeD But not aCCrueD InCoMe

Group 31 Dec 2013 31 Dec 2012

Invoicing of work not yet completed 7,146,002 7,003,289

accrued income from work not yet completed ‑5,991,643 ‑5,917,887

1,154,359 1,085,402

accrued income from installation projects in progress are recognised in accordance with the percentage of completion method. the degree of completion is defined as project expenditure incurred at the end of the period compared with the total project cost cor‑responding to the project income.

In the balance sheet, installation projects are recognised gross on a project by project basis, either as accrued but not invoiced income in current assets or as Invoiced but not accrued income in current liabilities. projects for which the accrued income exceeds the amount invoiced are recognised as an asset while projects for which the amount invoiced exceeds the accrued income are recognised as a liability.

NOTE 24 otHer lIaBIlItIeS


31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

otHer Current lIaBIlItIeS

Value‑added tax liability 137,990 128,093 – –

employee withholding taxes 96,661 101,500 35 –

other 78,114 89,489 – –

312,765 319,082 35 –

NOTE 25 aCCrueD eXpenSeS anD DeFerreD InCoMe


31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

accrued holiday pay and salaries 668,601 653,974 154 –

accrued social security contributions 219,385 222,451 51 –

accrued interest expenses 11,755 37,187 7,887 37,187

other items 46,714 58,385 1,125 5,634

946,455 971,997 9,217 42,821



noteS

NOTE 26 ValuatIon oF FInanCIal lIaBIlItIeS at FaIr Value

the following table shows carrying amounts and fair values for financial instruments. For interest‑bearing assets and liabilities, fair value has been determined by discounting future payment flows at the market interest rate applying at the balance sheet date. the carrying amounts of trade receivables and trade payables are deemed to be the same as the fair values. the discount rate is the market interest rate for similar instruments at the balance sheet date.

Group 31 Dec 2013Loans and trade

receivablesOther financial assets

and liabilitiesTotal

carrying amount Fair value

trade receivables 1,763,755 – 1,763,755 1,763,755

other receivables 12,620 – 12,620 12,620

Total assets 1,776,375 – 1,776,375 1,776,375

Current liabilities to credit institutions – 3,312,175 3,312,175 3,312,175

trade payables – 964,096 964,096 964,096

Total liabilities – 4,276,271 4,276,271 4,276,271

Group 31 Dec 2012Loans and trade




trade receivables 1,900,830 – 1,900,830 1,900,830

other receivables 9,168 – 9,168 9,168

Short‑term investments and restricted funds 3,072 – 3,072 3,072

Total assets 1,913,070 – 1,913,070 1,913,070

non‑current liabilities to credit institutions – 2,804,000 2,804,000 2,804,000

overdraft facilities – 50,000 50,000 50,000

trade payables – 1,085,402 1,085,402 1,085,402

other liabilities – 10,071 10,071 10,071


Parent company 31 Dec 2013Loans and trade




Current receivables from Group companies – 2,953,010 2,953,010 2,953,010

Total assets – 2,953,010 2,953,010 2,953,010

non‑current liabilities to credit institutions – 3,312,175 3,312,175 3,312,175

Current liabilities to Group companies – 62,830 62,830 62,830

trade payables – 3,259 3,259 3,259


Parent company 31 Dec 2012Loans and trade




non‑current receivables from Group companies 341,881 341,881 341,881

Current receivables from Group companies – 2,307,225 2,307,225 2,307,225

Total assets – 2,649,106 2,649,106 2,649,106

Current liabilities to credit institutions – 2,804,000 2,804,000 2,804,000



noteS

NOTE 27 FInanCIal rISKS anD FInanCIal polICIeS

Financial risks and financial policiesthrough its operations the Group is exposed to various types of financial risk. Financial risks refer to fluctuations in the company’s earnings and cash flow due to changes in exchange rates, interest rates, and refinancing and credit risks. the Group’s financial management is governed by the applicable financial policy, which is adopted by Bravida’s Board of Directors and constitutes a framework of guidelines and rules in the form of risk mandates and limits for the company’s financial activities. the central accounting & Finance support function is responsible for coordinating the Group’s financial activities. the general goal for the accounting & Finance function is to provide cost‑effective financing and to minimise negative effects on the Group’s earnings that derive from financial risks.

Market riskMarket risk is the Group’s risk that the fair value of financial instruments or future cash flows from financial instruments will fluctuate as a result of changes in market prices. the Group’s main market risks are interest risk and currency risk.

Interest riskInterest risk is the risk that the Group’s future earnings and cash flow will be negatively affected by changes in interest rates. the Group is primarily exposed to interest risk through cash and cash equivalents and through interest‑bearing liabilities. the average fixed‑rate period for all interest‑bearing assets was 0 years (0). the interest rate for these at year‑end was 0.6 per cent (0.8). of the Group’s total interest‑bearing financial assets, 0 per cent (0) have fixed interest rates and 100 per cent (100) have variable interest rates.

the average fixed‑rate period for all interest‑bearing liabilities, taking derivatives into account and excluding pension liabilities, was 5 years (0). the interest rate for interest‑bearing liabilities at year‑end was 5.7 per cent (6.1). taking derivatives into account, the interest rate was 7.2 per cent (6.1). of total interest‑bearing financial liabilities, after taking derivatives into account, 76 per cent (‑) have fixed interest rates and 24 per cent (‑) have variable interest rates. In order to limit the risk, the Group has entered into interest rate swaps with a nominal value of SeK 2,520 million (‑). a net amount of SeK 2,520 million (‑) of the Group’s borrowing has been swapped from variable to fixed inter‑est rates. Bravida applies hedge accounting to these hedging instruments. In addition to the interest rate swaps, Bravida has entered into interest rate options with an interest rate ceiling. the portion relating to the time value is recognised in the net financial expense, while hedge accounting is applied to the remaining portion. the fair value of these hedges at 31 December 2013 was SeK 43 million (0). the hedges fulfil the effectiveness requirements, which means that unrealised gains and losses are recognised in other comprehensive income.

a one percentage point change in the market interest rate over the entire interest rate curve would change the fair value of interest‑bearing financial assets and liabilities, as well as derivatives, by around SeK 1 million (‑), given the same volume and fixed‑interest period as at 31 December 2013.

Currency riskCurrency risk is defined as the risk that changes in exchange rates will have a negative impact on the consolidated income statement and cash flow. this risk can be divided into transaction exposure, i.e. the net operating and financial (interest/repayments) flows, and translation exposure, which relates to net investments in foreign subsidiaries.

Bravida’s transaction exposure is low, as both sales and purchases are largely made in local currency. translation exposure arises when assets and liabilities are denominated in different currencies, and when the results and net assets of foreign subsidiaries are translated to Swedish kronor. For the Group, translation risks arise in the subsidiaries in norway and Denmark, as well as in the form of borrowings in foreign currencies. assets and liabilities in foreign currencies are translated at closing rates. In order to limit the risk, the Group has entered into currency swaps for borrowings in foreign currencies with a nominal value of SeK 1,938 million (‑). a net amount of SeK 1,938 million (‑) of the Group’s borrowing in foreign currency has been swapped from foreign currency to Swedish kronor and norwegian kroner. the fair value of these hedges at 31 December 2013 was SeK 15 million (‑). the fair value of the currency loans is SeK 2,012 million (‑).

Bravida applies hedge accounting to the currency swaps that are in SeK. the hedges fulfil the effectiveness requirements, which means that unrealised gains and losses are recognised in other comprehensive income. If the Swedish krona were to fall/rise by 10 per cent against other currencies, this would have an effect of SeK +/‑37 million, after taking hedges into account.

Liquidity risksliquidity risk is the risk that the Group will face problems meeting its obligations as‑sociated with financial liabilities. the Group has a rolling one‑month liquidity planning system that covers all units in the Group. the plans are updated continually. the Group’s forecasts also comprise medium‑term liquidity planning. liquidity planning is used to manage liquidity risk and the costs of funding the Group. the goal is to ensure that the Group is able to meet its financial obligations regardless of economic climate without incurring significant unforeseen expenses. liquidity risk throughout the Group is man‑aged by the central Finance & accounting department.

Financial liabilities

Bond loanBravida’s basic funding arrangement was restructured in 2013. the Group issued two bond loans during the year, one for SeK 1,300 million and one for SeK 225 million. the bond loans mature at 15 June 2019. this issue enabled existing bank loans of SeK 2,804 million to be paid off. the bond loans are subject to interest rates tied to the 3‑month StIBor and eurIBor respectively.

Credit facilitiesthe issue of these bonds also enabled the restructuring of other credit facilities.In addition to the bond loans, the Group has an overdraft facility of SeK 300 million (300) linked to the Group’s cash pool, as well as a revolving facility of SeK 150 million (450).

the loan agreements specify key financial performance indicators (covenants) that the Group is required to meet, which is customary for this type of loan.

at year‑end, Bravida was meeting these covenants by a good margin.the total credit granted, including unused overdraft facilities, was SeK 450 million

(750) at 31 December 2013. of the total credit granted, SeK 0 million (50) was utilised. the total credit granted is SeK 450 (750). the Group was not utilising its credit facili‑ties at year‑end. the fixed‑rate period for utilised credit last year was 0 months. the remaining term for unused credit was 66 months (55), and for total credit granted was 66 months (55).

Maturity structure of financial liabilities

Group 31 Dec 2013 2014 2015 2016 2017

loans – – – –

overdraft facilities – – – –

trade payables 964,096 – – –

other liabilities – – – –

Total 964,096 – – –

Group 31 Dec 2012 2013 2014 2015 2016

loans 2,804,000 – – –

overdraft facilities 50,000 – – –

trade payables 1,085,402 – – –

other liabilities 10,071 – – –

Total 3,949,473 – – –



noteS

Parent company 31 Dec 2013 2014 2015 2016 2017

loans – – – –


trade payables 3,259 – – –


Total 3,259 – – –

Parent company 31 Dec 2012 2013 2014 2015 2016

loans 2,804,000 – – –


trade payables – – – –


Total 2,804,000 – – –

Credit facilities

Group 31 Dec 2013 Nominal Drawn Available

Bond loan, SeK 1,300,000 1,300,000 –

Bond loan, eur 2,012,175 2,012,175 –

revolving facilities 150,000 – 150,000

overdraft facilities 300,000 – 300,000

Cash and cash equivalents 837,517 – 837,517

Liquidity reserve 4,599,692 3,312,175 1,287,517

Group 31 Dec 2012 Nominal Drawn Available

Bank loans 2,804,000 2,804,000 –

revolving facilities 450,000 50,000 400,000

overdraft facilities 300,000 – 300,000

Cash and cash equivalents 96,635 – 96,635

Liquidity reserve 3,650,635 2,854,000 796,635

Fixed-rate period for used credits 31 Dec 2013

AmountAverage effective

interest rate, % Share, %

2014 3,312,175 5.70 100

Total 3,312,175 5.70 100

Fixed-rate period for used credits 31 Dec 2012

AmountAverage effective

interest rate, % Share, %

2013 2,854,000 6.10 100

Total 2,854,000 6.10 100

Exposure of net assets in foreign currencythe translation exposure that arises through investments in foreign net assets is not hedged.

Foreign net assets

Group

Local currency 31 Dec 2013 31 Dec 2012

noK 453,037 332,639

DKK 172,651 151,467

a 10 per cent strengthening of the norwegian krone at 31 December 2013 would have a positive translation effect on equity of SeK 48 million. the same increase in the value of the Danish krone would have a positive translation effect on equity of SeK 21 million. the effects of the corresponding exchange rate changes on profit for the year are limited. the foreign exchange difference for the year in comprehensive income was SeK ‑18 million (18).

Commercial exposureInternational purchases and sales of goods and services in foreign currencies are limited in scope but can be expected to increase as the Group expands and in response to mounting competition in respect of purchasing of goods and services.

Credit riskCredit risk refers to the risk of losing money due to the inability of a counterparty to meet its obligations.

Credit risks in financing activitiesthe credit risk in the Group’s financing activities is very small, as Bravida only concludes agreements with counterparties with the highest creditworthiness. Credit risks refer mainly to counterparty risks in connection with receivables from banks and other counterparties. the Group’s financial policy contains a set of counterparty regulations specifying maximum credit exposures for different counterparties. the estimated gross exposure to counterparty risk in respect of cash and cash equivalents and short‑term investments was SeK 838 million (100).

Credit risks in trade receivablesthe risk that the company’s customers will fail to fulfil their obligations, i.e. that the company will not receive payment from its customers, constitutes a customer credit risk. Credit losses are normally small thanks to the very large number of projects and customers, which are invoiced regularly during the period of production. Before a project is initiated, the credit risk of the customer is assessed, whereby information about the customer’s financial position is obtained from various credit information companies. the Group has adopted a credit policy for the management of customer credits. the policy states, among other things, where decisions should be made on credit limits of various sizes and how doubtful receivables should be handled. a bank guarantee or other security is required for customers with low creditworthiness or an insufficient credit history. the maximum credit exposure is stated in the consolidated balance sheet. total credit losses were SeK ‑25.5 million (59). there was no significant concentration of credit risks at the balance sheet date.

Based on historical data, the Group makes the assessment that no impairment of trade receivables that are not yet due had occurred at the balance sheet date.

Trade receivables past due but not impaired

Group

Carrying amount, not impaired receivables 31 Dec 2013 31 Dec 2012

trade receivables not yet due 1,529,274 1,444,703

trade receivables past due 1–15 days 131,820 336,179



receivables past due > 60 days 123,006 144,757

Total 1,833,260 2,002,127


noteS

Group

Impaired trade receivables 31 Dec 2013 31 Dec 2012

opening balance ‑101,257 ‑47,513

Change for the year 31,751 ‑53,744

Closing balance 69,506 -101,257

In other financial receivables there are no past due receivables.

Group

Sensitivity analysis Change +- %Effect on earnings

before tax +- SEKm

Sales 1% 6

operating margin 1 % point 111

payroll costs 1% 50

Materials and subcontractors 1% 44

Share productive installer time 1 % point 59

Interest rate on loans 1 % point 8

exchange rate DKK 10% 7

exchange rate noK 10% 7

NOTE 28 leaSe payMentS unDer operatInG leaSeS


1 Jan 2013-31 Dec 2013

1 Aug 2012-31 Dec 2012

1 Jan 2013-31 Dec 2013

1 Aug 2012-31 Dec 2012

aSSetS HelD unDer operatInG leaSeS none none

Minimum lease payments 180,217 79,722 – –

Variable payments – – – –

Total lease costs 180,217 79,722 – –

BreaKDoWn oF leaSe payMentS By aGreeMent

lease payments, vehicles 176,820 78,638 – –

lease payments, It 93 114 – –

lease payments, other 3,304 970 – –

Total lease costs 180,217 79,722 – –

Future leaSe CoMMItMentS

nominal value of future minimum lease payments relating tonon‑cancellable contracts fall due for payment:

‑ Within 1 year 124,095 118,785 – –

‑ Between 1 and 5 years 165,458 183,399 – –

‑ after 5 years – 1,127 – –

289,553 303,311 – –

Future CoMMItMentS, rent For preMISeS

nominal value of future commitments in respect ofrent for premises fall due for payment:

‑ Within 1 year 107,751 96,048 – –

‑ Between 1 and 5 years 215,564 201,342 – –

‑ after 5 years 5,270 12,159 – –

328,585 309,549 – –

Cars, office equipment and It equipment are classified as operating leases. In Sweden, norway and Denmark, Bravida has framework agreements covering operating leases for cars and related administrative services. the terms of the leases normally range from three to five years. the purchase of leased objects and the extension of leases require a separate agreement.



noteS

NOTE 29 pleDGeD aSSetS anD ContInGent lIaBIlItIeS


31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

pleDGeD aSSetS

For own liabilities and provisions

property mortgages 1,800 1,800 – –

Floating charges 999,100 1,019,100 – –

Shares in subsidiaries 15,884,439 8,746,153 3,672,582 3,672,582

Funds, endowment policies 37,891 40,535 – –

16,923,230 9,807,588 3,672,582 3,672,582

ContInGent lIaBIlItIeS

For own liabilities and provisions

Guarantee commitments, FpG/prI 21,004 20,253 – –

Guarantee commitments, for Group companies – – 1,050,194 –

21,004 20,253 1,050,194 None

Bravida Holding aB has acted as guarantor for Bravida Sverige aB’s pension liabilities, which in turn are guaranteed by prI. at the same time, Bravida Sverige aB has a pension fund containing assets of SeK 1,200,039,000, which more than covers the liability.


noteS

NOTE 30 relateD partIeS

the Group is under a controlling influence from Bravissima (BC) luxCo S.C.a. (luxemburg), the parent company of Bravissima Sweden aB.During 2012, funds represented by the private equity firm Bain Capital europe acquired Bravida from triton. the transfer of ownership took place on 31 July 2012, following approval

of the transfer by the eu Competition authority. In view of their influence, transactions with the following companies are regarded as related‑party transactions.until 31 July 2012, the Group was under a significant influence from triton Fund II. this fund is managed by triton Managers II limited. In view of their influence, transactions with

the following companies are regarded as related‑party transactions.


31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

tranSaCtIonS WItH BaIn CapItal partnerS llC

purchases from Bain Capital partners llC – 64,129 – –

tranSaCtIonS WItH pG aDVISorS SWeDen aB

purchases from pG advisors Sweden aB 15,211 – – –

tranSaCtIonS WItH BraVIDa InStallatIon oCH SerVICe aB

Interest received from Bravida Installation och Service aB – – 91,873 111,881

Group contribution made to Bravida Installation och Service aB – – ‑324,424 –

receivable from Bravida Installation och Service aB – – 1,990,354 2,649,106

tranSaCtIonS WItH BraVIDa aB

Sales to Bravida aB – – 1,000 –

Interest received from Bravida aB – – – 4,476

Group contribution made to Bravida aB – – ‑63,448 –

liability to Bravida aB – – ‑62,830 –

tranSaCtIonS WItH BraVIDa SVerIGe aB

Group contribution received from Bravida Sverige aB – – 388,515 –

receivable from Bravida Sverige aB – – 388,515 –

tranSaCtIonS WItH BraVIDa norGe HolDInG aS

Interest received from Bravida norge Holding aS – – 22,506 –

receivable from Bravida norge Holding aS – – 574,140 –

tranSaCtIonS WItH trIton aDVISorS ltD.

purchases from triton advisors ltd. – 185 – 185

tranSaCtIonS WItH WeSt parK ManaGeMent SerVICeS ltD

purchases from West park Management Services ltd – 559 – 559

In addition to the related‑party relationships indicated for the Group, the parent company has related‑party relationships involving a controlling influence with its subsidiaries. See note 31.

Senior executivesFor information on salaries and other compensation, expenses and obligations in respect of pensions and similar benefits, and agreements on severance pay for the Board of Directors, Chief executive officer and other senior executives, see note 5.



noteS

NOTE 31 IntereStS In Group CoMpanIeS

Parent company

31 Dec 2013 31 Dec 2012

aCCuMulateD CoSt

at beginning of year 3,672,582 –

purchases – 3,672,582

Carrying amount at end of period 3,672,582 3,672,582

Bravida Holding aB owns shares directly in Bravida Installation och Service aB. the other subsidiaries listed below are indirectly owned.

Specification of interests in Group companies

31 Dec 2013

Subsidiary / Reg.no. / Regd office No. of shares Share, % 1) Carrying amount

Bravida Installation och Service aB, 556892‑0705, Stockholm 456,832,121 100.0 3,672,582

Bravida aB, 556713‑6519, Stockholm 1,012,429,900 100.0 7,341,332

Bravida Sverige aB, 556197‑4188, Stockholm 20,000 100.0 2,543,983

Bravida prenad aB, 556454‑1315, Malmö 50,000 100.0 73,044

Bravida Säkerhet aB, 556193‑1832, Stockholm 5,100 100.0 14,961

erfator projektledning aB, 556401‑7795, Kista 1,000 100.0 9,072

C2M Sprinkler aB, 556684‑9021, Mark 2,100 70.0 16,827

rörspecialisten i Stockholm aB, 556353‑5227, Stockholm 1,000 100.0 46,624

Bravida Service Mellersta aB, 556181‑4020, norrköping 1,000 100.0 160

e/S Intressenter aB, 556564‑6741, Skellefteå 1,000 100.0 14,828

e/S elconsult aB, 556311‑0633, Skellefteå 1,000 100.0 432

e/S Installation aB, 556306‑0838, Skellefteå 1,000 100.0 415

e/S Styromatic aB, 556111‑9248, Skellefteå 1,000 100.0 1,028

Juhl air Control aB, 556308‑0356, Kävlinge 2,000 100.0 229

appelgrens elektriska Mölndal aB, 556296‑9435, Mölndal 30,000 100.0 361

Byggnadsaktiebolaget Konstruktör, 556012‑3670, Stockholm 1,485,417,130 100.0 553,010

Bravida el Stockholm aB, 556439‑4681, Stockholm 30,000 100.0 58,727

Styltsnäppan aB, 556181‑0812, Stockholm 9,500 100.0 1,140

Bravida Danmark a/S, 14769005, Brøndby, Denmark 4 100.0 260,859

Selskabet av 7 oktober 2003 apS, 10035422, Brøndby, Denmark DKK '000 2,211 100.0 2,797

Bravida norge Holding aS, 998 121 221, oslo, norway 30 100.0 320,035

Bravida aS, 982 281 024, oslo, norway noK '000 500,001 100.0 788,678

Bravida norge aS, 987 582 561, oslo, norway noK '000 10,796,137 100.0 246,688

Ing. Mosness norstad aS, 974 445 158, Drammen, norway noK '000 1,000 91.0 13,644

el team Drift aS, 981 402 561, Bodø, norway noK '000 1,000 91.0 8,532

1) refers to the ownership share of the capital, which is also consistent with the share of voting rights for the total number of shares.


noteS

31 Dec 2012

Subsidiary / Reg.no. / Regd office No. of shares Share, % 1) Carrying amount

Bravissima acquisitions aB, 556892‑0705, Stockholm 456,832,121 100.0 3,672,582

Scandinavian Installation refi aB, 556012‑3670, Stockholm 1,485,417,130 100.0 4,269,978

Scandinavian Installation acquisition aB, 556713‑6519, Stockholm 1,012,429,900 100.0 3,624,364

Bravissima aS, 998 121 221, oslo, norway 30 100.0 34

Bravida aB,556713‑6535, Stockholm 51,313,833 100.0 1,318,929

Bravida Sverige aB, 556197‑4188, Stockholm 20,000 100.0 2,543,983

Bravida prenad aB, 556454‑1315, Malmö 50,000 100.0 73,044

Bravida Säkerhet aB, 556193‑1832, Stockholm 5,100 100.0 14,961

erfator projektledning aB, 556401‑7795, Kista 1,000 100.0 9,072

Ferax projektstyrning aB, 556722‑6500, Stockholm 500,000 100.0 2,320

C2M Sprinkler aB, 556684‑9021, Mark 2,100 70.0 16,827

Bravida Service Mellersta aB, 556181‑4020, norrköping 1,000 100.0 160

e/S Intressenter aB, 556564‑6741, Skellefteå 1,000 100.0 14,828

e/S elconsult aB, 556311‑0633, Skellefteå 1,000 100.0 432

e/S Installation aB, 556306‑0838, Skellefteå 1,000 100.0 415

e/S Styromatic aB, 556111‑9248, Skellefteå 1,000 100.0 1,028

Juhl air Control aB, 556308‑0356, Kävlinge 2,000 100.0 5,905

appelgrens elektriska Mölndal aB, 556296‑9435, Mölndal 30,000 100.0 3,087

Sandsnäppan aB, 556702‑2412, Stockholm 1,001 100.0 100

Styltsnäppan aB, 556181‑0812, Stockholm 9,500 100.0 1,140

Bravida el Stockholm aB, 556439‑4681, Stockholm 30,000 100.0 58,727

Bravida Danmark a/S, 14769005, Brøndby, Denmark 4 100.0 260,859

Selskabet av 7 oktober 2003 apS, 10035422, Brøndby, Denmark DKK '000 2,211 100.0 2,797

Bravida aS, 982 281 024, oslo, norway 500,001 100.0 578,322

Bravida norge aS, 987 582 561, oslo, norway noK '000 10,796,137 100.0 246,688

a Halvorsen & Sønn aS, 870 999 402, lilleström, norway noK '000 1,000 100.0 15,000

aug larsen aS, 913 760 301, oslo, norway noK '000 1,000 100.0 6,000

1) refers to the ownership share of the capital, which is also consistent with the share of voting rights for the total number of shares.



noteS

NOTE 32 StateMent oF CaSH FloWS


SEK millions Note1 Jan 2013

-31 Dec 20138 Aug 2012

-31 Dec 20121 Jan 2013

-31 Dec 201325 April 2012-31 Dec 2012

IntereSt paID anD DIVIDenD reCeIVeD

Dividend received – – – –

Interest received 56 1 55 –

Interest paid ‑330 ‑74 ‑254 ‑65

aDJuStMentS For non‑CaSH IteMS, etC.

Depreciation/amortisation and impairment of assets 7, 10 13 6 – –

unrealised foreign exchange differences 43 – 87 –

realised foreign exchange differences 61 – – –

Hedge accounting in net financial expense ‑75 – – –

Capital gain/loss on sale of operations/subsidiaries – 33 – –

pension provisions 37 18 – –

Change in provisions ‑6 33 – –

73 89 87 –

unuSeD CreDItS

unused credit facilities were: 22 450 1,100 150 –

NOTE 33 eVentS aFter tHe BalanCe SHeet Date

on 11 February, Bravida Holding aB adopted a plan for a merger with subsidiary Bravida Installation och Service aB.

the dissolution of Bravida Installation och Service aB is scheduled to take place within 3 months of the adoption of the merger plan.

NOTE 34 SIGnIFICant eStIMateS anD aSSeSSMentS

the following is a description of certain significant accounting estimates and assess‑ments that have been made in applying the Group’s accounting policies.

Percentage of completion accountingreported earnings for installation projects in progress are accounted for in accordance with the percentage of completion method based on the degree of completion of the project. use of this method requires that project income and project expenses can be reliably measured, which in turn requires a well‑functioning system for cost estimates, forecasting procedures and project review. Forecasts relating to the final outcome for the project are a critical assessment that is material to the reporting of earnings during the course of the project. there is a risk that the final earnings for the project may differ from earnings as reported in accordance with the percentage of completion method.

Impairment tests of goodwillIn estimating recoverable amounts for cash‑generating units for the purpose of testing for impairment of goodwill, several assumptions about future circumstances and estimates of parameters have been made. these are described in note 16.

Pension assumptionsManagement has assumed that the return on plan assets will exceed the discount rate by one percentage point, as this is the average return achieved over the last three years. to the extent that the actual return in 2014 deviates significantly from the expected long‑term return, actuarial gains or losses could have a significant impact on the reported liability for defined benefit pensions. Similarly, deviations and changes to assumptions in respect of the calculation of the pension liability could have significant effects on the reported value of the net liability.

NOTE 35 InForMatIon aBout tHe parent CoMpany

Bravida Holding aB is a Swedish‑registered limited liability company with its registered office in Stockholm. the address of the head office is Mikrofonvägen 28, Se‑126 81 Stockholm.

the consolidated financial statements for 2013 comprise the parent company and its subsidiaries, which are jointly referred to as “the Group”. the Group also includes the owned portion of interests in associates.


SIGnatureS oF tHe BoarD oF DIreCtorS

the Board of Directors and Chief executive officer warrant that the annual accounts have been prepared in accordance with generally accepted accounting principles in Sweden and that the consolidated financial statements have been prepared in accordance with the international financial reporting standards referred to in regulation (eC) no 1606/2002 of the european parliament and of the Council of 19 July 2002 on the application of international accounting

standards. the annual accounts and consolidated financial statements give a true and fair view of the parent company’s and Group’s financial positions and results. the Directors' report for the parent company and Group gives a true and fair overview of the development of the parent company’s and Group’s activities,

their financial positions and results, and describes significant risks and uncertainties faced by the parent company and the companies included in the Group.

Stockholm, 13 March 2014

our audit report was submitted on 13 March 2014.KpMG aB

Per Gustafssonauthorised public accountant

as stated above, the annual accounts and consolidated financial statements were approved for release by the Board of Directors on 13 March 2014.the consolidated statement of comprehensive income and balance sheet and the parent company income statement and balance sheet will be submitted

for adoption at the annual General Meeting on 13 March 2014.

Michael SiefkeChairman of the Board

Michel PlantevinDirector

Staffan PåhlssonChief executive officer

Jan JohanssonDirector

Ivano SessaDirector

Jay CorriganDirector

Marc ValentinyDirector

Jan-Erik Arvidssonemployee representative

Kai-Otto Helmersenemployee representative

Anders Mårtenssonemployee representative

Peter Sjöquistemployee representative


auDIt report

Report on the annual accounts and consolidated financial statementsWe have audited the annual accounts and consolidated financial statements for Bravida Holding aB for 2013.

The Board of Directors’ and Chief Executive Officer’s responsibility for the annual accounts and consolidated financial statementsresponsibility for preparing annual accounts which give a true and fair view pursuant to the Swedish annual accounts act and consolidated financial state‑ments which give a true and fair view pursuant to the International Financial reporting Standards, as adopted by the eu, and the Swedish annual accounts act, and for such internal control as the Board of Directors and Chief executive officer deem necessary for the purpose of preparing annual accounts and consolidated financial statements that are free from material misstatement, whether due to irregularities or error, rests with the Board of Directors and Chief executive officer.

The auditor’s responsibilityour responsibility is to express an opinion on the annual accounts and consolidated financial statements based on our audit. We have conducted our audit in accordance with the International Standards on auditing and generally accepted auditing standards in Sweden. these standards require that we observe professional ethical standards and conduct our audit with the aim of obtaining a reasonable degree of certainty that the annual accounts are free of material misstatement.

an audit involves obtaining, through various actions, audit evidence of the accuracy of amounts and other information contained in the annual accounts and consolidated financial statements. the auditor decides which actions to take, partly by assessing the risks of material misstatements in the annual accounts and consolidated financial statements, whether due to irregulari‑ties or errors. In this risk assessment, the auditor considers those aspects of the internal control that are relevant for how the company prepares its annual accounts and consolidated financial statements with the aim of giving a true and fair view for the purpose of devising auditing actions that are appropriate in view of the circumstances, but not for the purpose of expressing an opinion on the efficacy of the company’s internal control. an audit also includes an evaluation of the appropriateness of the accounting principles employed and the reasonableness of the estimates used by the Board of Directors and Chief executive officer in preparing the accounts as well as an evaluation of the gen‑eral presentation in the annual accounts and consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and adequate as a basis for our opinion.

OpinionIn our opinion, the annual accounts have been prepared in accordance with the annual accounts act and give an essentially true and fair view of the parent company’s financial position at 31 December 2013 and of its financial results and cash flows for the year in accordance with the annual accounts act, and the consolidated financial statements have been prepared in accordance with the annual accounts act and give an essentially true and fair view of the Group’s

financial position at 31 December 2013 and of its results and cash flows in accordance with the International Financial reporting Standards, as adopted by the eu, and with the annual accounts act. the Directors’ report accords with the other parts of the annual accounts and consolidated financial statements.

We therefore recommend that the annual General Meeting adopt the parent company income statement and balance sheet and the consolidated statement of comprehensive income and balance sheet. Report on other statutory and regulatory requirementsIn addition to our audit of the annual accounts and consolidated financial statements, we have also audited the proposed appropriation of the company’s profit or loss and the Board of Directors’ and Chief executive officer’s adminis‑tration of Bravida Holding aB for 2013.

The Board of Directors’ and Chief Executive Officer’s responsibilityunder the Swedish Companies act, responsibility for the proposal for ap‑propriation of the company’s profit or loss rests with the Board of Directors, and responsibility for the administration rests with the Board of Directors and Chief executive officer.

The auditor’s responsibilityour responsibility is to express an opinion, with a reasonable degree of certainty, on the proposal for appropriation of the company’s profit or loss and on the administration on the basis of our audit. We have conducted our audit in accordance with generally accepted auditing standards in Sweden.

as a basis for our opinion on the Board of Directors’ proposal for appropriation of the company’s profit, we have examined the Board of Directors’ reasoned opinion and a selection of evidence for this in order to determine whether the proposal is consistent with the Swedish Companies act.

as a basis for our statement on release from liability, we have, in addition to our audit of the annual accounts and consolidated financial statements, exam‑ined significant decisions, actions and circumstances of the company in order to be able to determine the liability, if any, to the company of any Director or of the Chief executive officer. We have also examined whether any Director or the Chief executive officer has in any other way acted in violation of the Swedish Compa‑nies act, the annual accounts act or the company’s articles of association.

We believe that the audit evidence we have obtained is sufficient and adequate as a basis for our opinion.

OpinionWe recommend that the annual General Meeting appropriate the profit as pro‑posed in the Directors’ report and grant release from liability to the members of the Board of Directors and Chief executive officer in respect of the financial year.

Stockholm, 13 March 2014KpMG aB

per Gustafsson authorised public accountant

audit report

to the annual General Meeting of Bravida Holding aB, reg. no. 556891‑5390


BoarD oF DIreCtorS

MICHAEL SIEFKEpartner, Bain Capitalrole on the Board: Chairmanelected to the Board: 2012year of birth: 1967

MARC VALENTINYpartner, Bain Capitalrole on the Board: Directorelected to the Board: 2012year of birth: 1964

JAN-ERIK ARVIDSSON title/profession: electrician – the Swedish electricians’ unionelected to the Board: 2007year of birth: 1950

JAN JOHANSSON Ceo, Malmö Cityfastigheterrole on the Board: Directorelected to the Board: 2013year of birth: 1959

PETER SJöQUISTtitle/profession: project Manager/technician – ledarna i Sverigeelected to the Board: 2007year of birth: 1957

JAY CORRIGAN CFo, Bain Capitalrole on the Board: Directorelected to the Board: 2013year of birth: 1977

IVANO SESSAprincipal, Bain Capitalrole on the Board: Directorelected to the Board: 2012year of birth: 1977

ANDERS MåRTENSSONtitle/profession: plumber – the Swedish Building Workers’ union (Byggnads i Sverige)elected to the Board: 2007year of birth: 1965

MICHEL PLANTEVINpartner, Bain Capitalrole on the Board: Directorelected to the Board: 2012year of birth: 1956

KAI-OTTO HELMERSENtitle/profession: electrical fitter – the norwegian electricians union (el & It)elected to the Board: 2012year of birth: 1973

EMPLOYEE REPRESENTATIVES

Board of directors Bravida holding aB


SenIor ManaGeMent

Bravida’s senior management

STAFFAN PåHLSSON Chief executive officer and Group presidentyear of birth: 1952year of employment: 1980

From the left: petter Håkanson, anders ahlquist, Mikael lidström, lars Korduner, peter Hedlin, Magnus liljefors, Staffan påhlsson, Filip Bjurström, Bent andersen, Mattias Johansson.

ANDERS AHLQUISTHead of Division Southyear of birth: 1966year of employment: 2008

MIKAEL LIDSTRöMHead of Division northyear of birth: 1966year of employment: 1995‑2006, 2013

BENT ANDERSEN Head of Division Denmarkyear of birth: 1961year of employment: 2003

PETER HEDLINInterim Chief Financial officeryear of birth: 1956year of employment: 2013

MATTIAS JOHANSSON Head of Division norwayyear of birth: 1973year of employment: 1998

FILIP BJURSTRöM Head of Division Stockholmyear of birth: 1969year of employment: 2009

MAGNUS LILJEFORSChief legal officer year of birth: 1963year of employment: 2005

LARS KORDUNER Chief purchasing officeryear of birth: 1966year of employment: 2005

PETTER HåKANSON Head of Business Development, It and Communicationsyear of birth: 1967year of employment: 2005


multi-year review

MultI‑year reVIeW

Income statement items 2013 2012* 2011* 2010* 2009*

net sales 11,080 11,400 10,768 10,345 10,831

Costs of production ‑8,856 ‑9,164 ‑8,573 ‑8,205 ‑8,507

Gross profit/loss 2,224 2,236 2,195 2,140 2,324

administrative and selling expenses ‑1,624 ‑1,633 ‑1,531 ‑1,519 ‑1,779

Earnings before goodwill amortisation (EBITA) 600 604 664 621 545

Disposal of activities ‑33

amortisation and write‑down intangible assets 0 ‑1 0 – ‑9

Operating profit/loss (EBIT) 600 570 663 621 536

net financial income/expenses ‑378 ‑31 ‑48 ‑48 ‑25

Profit/loss after financial items (EBT) 222 539 616 573 511

tax ‑47 ‑145 ‑106 ‑161 35

Profit/loss for the year 174 394 510 412 545

Balance sheet items

Goodwill 6,733 6,745 2,203 2,134 2,149

other non‑current assets 354 291 409 444 477

Current assets 3,623 3,036 3,306 2,501 3,465

Total assets 10,710 10,072 5,919 5,079 6,091

equity 3,701 3,378 2,121 1,355 1,720

non‑current liabilities 3,495 3,100 221 210 963

Current liabilities 3,514 3,594 3,576 3,515 3,408

Total equity and liabilities 10,710 10,072 5,919 5,079 6,091

Cash Flow

Cash flow from operating activities 457 424 559 398 516

Cash flow from investing activities ‑54 ‑37 ‑66 19 ‑183

Cash flow from financing activities 344 ‑408 ‑453 ‑1,244 ‑87

Cash flow for the year 746 -21 41 -827 246

Key Ratios

eBIta margin 5.4% 5.3 % 6.2 % 6.0 % 5.0 %

order intake 12,346 11,564 11,315 10,601 10,215

order backlog 6,075 4,809 4,590 3,840 3,648

average no. of employees 7,967 8,139 7,955 7,834 8,078

Sales per employee 1.391 1.401 1.354 1.321 1.341

administration costs as % of sales 14.7 % 14.3 % 14.2 % 14.7 % 16.4 %

Working capital as % of sales ‑5.5 % ‑4.2 % ‑4.3 % ‑3.7 % ‑3.4 %

* Comparative figures reported in 2009–2012 were pro forma figures comprised of information for the Bravida aB Group running comparable activities.


DeFInItIonS

Graphic form and production: oxenstierna & partners aB

definitions

FINANCIAL DEFINITIONS

Operating marginearnings before impairment of goodwill (eBIta), as a percentage of net sales.

Profit marginearnings after financial items, as a percentage of net sales.

Capital employedBalance sheet total (total assets) less interest‑bearing liabilities.

Return on capital employedprofit after financial items plus financial expense, as a percentage of average capital employed.

Equity/assets ratioequity plus, in the parent company, the equity share of untaxed reserves, as a percentage of total assets at year‑end.

Interest coverage ratioprofit after financial items plus interest expense, divided by interest expense.

Net salesIn the installation business, net sales are accounted for in accordance with the percentage of completion method. these revenues are recognised in propor‑tion to the degree of completion of the installation projects. In other operations net sales is the same as billing for the year.

Order intakethe value of received projects and changes to existing projects during the period concerned.

Order backlogthe value of remaining, not yet accrued project revenues from orders on hand at the end of the period.

OPERATIONAL DEFINITIONS

Installation/installation contractthe building or redevelopment of technical systems in buildings and infra‑structure.

Service operations and maintenance as well as minor redevelopment of installations in buildings, plant and infrastructure.

Number of employeesthe average number of employees during the year, taking account of full‑time and part‑time jobs.

Electrical (field of technology)power supply, lighting, heating, automatic control and surveillance systems. telecom and other light‑current installations. Fire and burglar alarm products and systems, access control systems, CCtV surveillance and integrated security systems.

Heating & plumbing (field of technology)Water, waste water, heating, sanitation, cooling and sprinkler systems. District heating and district cooling. Industrial piping with expertise for all types of pipe welding. energy‑saving measures in the form of integrated energy systems.

HVAC (field of technology)Comfort ventilation and comfort cooling in the form of air handling, air con‑ditioning and climate control. Commercial cooling in freezer rooms and cold rooms. process ventilation, automatic control systems. energy assessments and energy‑saving measures in the form of heat recovery ventilation, heat pumps, etc.


HEAD OFFICEBravida aBSe‑126 81 StockholmVisiting address: Mikrofonvägen 28Swedentelephone: +46 8 695 20 00www.bravida.se

DIVISION NORTHBravida Sverige aBBox 786Se‑851 22 SundsvallVisiting address: Montörvägen 7Swedentelephone: +46 60 66 39 00www.bravida.se

DIVISION STOCKHOLMBravida Sverige aBSe‑126 81 StockholmVisiting address: Mikrofonvägen 28Swedentelephone: +46 8 695 20 00www.bravida.se

DIVISION SOUTHBravida Sverige aBBox 40Se‑431 21 MölndalVisiting address: alfagatan 8Swedentelephone: +46 31 709 51 00www.bravida.se

DIVISION NORWAYBravida norge aSpostboks 313 Økernno‑0596 oslonorwayVisiting address: Østre aker vei 90telephone: +47 2404 80 00www.bravida.no

DIVISION DENMARKBravida Danmark a/Spark allé 373DK‑2605 BrøndbyDenmarktelephone: +45 4322 1100www.bravida.dk

bravida holding ab · the bravida holding group was formed on 1 august 2012 when the company...

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